USD/JPY: The 147.80 resistance is tempting for the bulls – UOB Group

The US Dollar (USD) is expected to trade in a range, probably between 146.50 and 147.80. Downward momentum is beginning to wane; a breach of 148.30 would mean the weakness in USD has stabilised, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

Markets may push upwards to test 147.80

24-HOUR VIEW: “Yesterday, we detected “a slight increase in downward momentum.” We expected USD to edge lower, but we highlighted that “given that momentum is not strong, any decline is unlikely to break below 146.00.” Our view was not wrong, as USD dropped briefly to 146.07, rebounding quickly to close at 147.31 (+0.33%). There has been no increase in either downward or upward momentum. Today, USD is expected to trade in a range, probably between 146.50 and 147.80.”

1-3 WEEKS VIEW: “Our update from three days ago (12 Aug, spot at 146.90) remains valid. As highlighted, downward momentum is beginning to wane, and a breach of 148.30 (no change in ‘strong resistance’ level) would mean that the recent weakness in USD has stabilised.”