USD/JPY: Door open to extra upside in the short term – UOB
Extra gains in USD/JPY looks likely and with the next target at the 135.00 level and beyond, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.
Key Quotes
24-hour view: “We highlighted yesterday that ‘there is room for USD to rise above 134.35’. However, we were of the view that ‘135.00 is likely out of reach’. Our view was not wrong as USD rose to 134.49 in NY trade. While upward momentum has not improved much, the bias for USD remains on the upside. That said, barring a surge in momentum, any advance is unlikely to break the major resistance at 135.00 today. Support is at 133.90, followed by 133.60.”
Next 1-3 weeks: “Our update from yesterday (16 Feb, spot at 133.85) still stands. As highlighted, upward momentum has improved further and USD is likely to continue to advance. The next level to watch is at 135.00, followed by 135.50. On the downside, a break of 132.80 (‘strong support’ level was at 132.40 yesterday) would indicate that the current upward pressure has eased.”