The bullish stance remains intact in USD/JPY and now faces a key resistance at 145.00, comment FX Strategists at UOB Group Lee Sue Ann and Quek Ser Leang.
24-hour view: “The outsized surge in USD to 143.07 came a surprise (we were expecting USD to range-trade). USD extended its rally during early Asian hours and could continue to rise towards 144.00. The next major resistance at 145.00 is unlikely to come into the picture for now. On the downside, any pullback is likely to stay above 142.00 (minor support is at 142.50).”
Next 1-3 weeks: “Two days ago (05 Sep, spot at 140.30), we held the view that USD is likely to advance further and we indicated that the focus is at 141.50. While our view for USD to strengthen was not wrong, we did not expect the manner by which it blast past 141.50 and rocketed to 143.07. Obviously, upward momentum is solid and the risk is still clearly for further USD strength. The next level to watch is at 145.00. Looking ahead, the next resistance above 145.00 is at the 1998 high near 147.65. Overall, the USD strength that started early last week is intact as long as it does not move below 141.00 (‘strong support’ level was at 139.30 yesterday).”