USD/JPY shifts the focus to 141.50 – UOB

Extra gains in USD/JPY could revisit the 141.50 region in the short-term horizon, said FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “We highlighted last Friday that ‘further USD strength is likely even though overbought conditions suggest USD may not be able to maintain a foothold above 140.50’. Our view was not wrong as USD rose briefly to 140.79 before easing off to close unchanged at 104.20. Upward momentum is positive and we see room for USD to retest the 140.80 level. A sustained advance above 140.80 is unlikely for now (the major resistance at 141.50 is unlikely to come under threat). Support is at 140.05 followed by 139.80.”

Next 1-3 weeks: “Last Friday (02 Sep, spot at 139.95), we highlighted that upward momentum remains strong and a break of 140.50 would shift the focus to 141.50. USD subsequently cracked 140.50 and rose to a high of 140.79. The price actions suggest USD is likely to advance further and the focus is at 141.50 now. On the downside, a breach of 139.30 (‘strong support’ level was at 138.60 last Friday) would indicate that USD is unlikely to advance further.”