USD/JPY: Extra gains in store beyond 145.00 – UOB

Further gains in USD/JPY should leave behind the 145.00 region in the next weeks, suggest FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we expected USD to ‘consolidate and trade between 141.90 and 143.50’. USD subsequently dipped below 141.90 (low of 141.83) before staging a sharp rally to 144.68 during NY session. Further USD strength appears likely even though overbought conditions suggest a sustained rise above 145.00 is unlikely. The next resistance at 145.50 is unlikely to come into view. Support is at 144.00 followed by 143.70.”

Next 1-3 weeks: “Two days ago (12 Sep, spot at 142.80), we highlighted that the recent 2-week USD strength has ended and we expected USD to consolidate and trade within a range of 140.80/144.60. Yesterday, USD surged to a high of 144.68 before closing at 144.55. Upward momentum has improved but USD to close above the major resistance at 145.00 below further advance is likely. If USD closes above 145.00, it could trigger an advance to 145.50, 146.00. On the downside, a break of 143.30 would indicate that USD is not ready to move above 145.00 in a sustained manner.”