USD/JPY: Upside bias remains unchanged – UOB

Extra gains could push USD/JPY to test the 149.00 region, according to UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: We expected USD to rise to 148.30 yesterday. However, after eking out a fresh high of 147.87, USD dropped to 147.03 before closing at 147.29 (-0.24%). USD appears to have moved into a consolidation phase. Today, we expect USD to trade in a range, likely between 147.00 and 147.80. 

Next 1-3 weeks: After USD soared to a high of 147.80, we indicated on Wednesday (06 Sep, spot at 147.70) that USD “is likely to rise further, probably to 149.00.” Since then, USD has not been able to make much further headway on the upside (it eked out a fresh high of 147.87 yesterday before easing). We continue to hold the same view for now. However, if USD breaks below 146.70 (no change in ‘strong support’ level), it would suggest that the recent momentum buildup has faded.