In relation to the Japanese yen (JPY), the US dollar (USD) may touch 151.30; it is unclear if it will be able to break decisively above this level. In the longer run, if USD breaks and holds above 151.30, it could trigger additional gains to 152.30, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD/JPY will see more advances over 151.30 to reach 152.30.
24-HOUR VIEW: “We anticipated that the USD would ‘edge higher’ yesterday when it was at 150.50. It ‘does not appear to have enough momentum to break firmly over 151.00,’ we noted. The expected rise was more than we had anticipated, with USD rising beyond 151.00 and peaking at 151.15. Even if the USD could hit 151.30 today, the rising momentum is still shaky, and it’s unclear if it will be able to break over this level with clarity. It seems unlikely that the next significant barrier at 152.30 will be visible. Support is located at 150.70 on the downside, and then at 150.30.
PERIOD OF ONE TO THREE WEEKS: “We pointed out two days ago (on March 26, at 149.90) that ‘there is scope for USD to rise further, but it may find the 151.00/151.30 resistance zone difficult to break.'” The USD hit a high of 151.15 yesterday. If the USD breaks and stays above 151.30 from here, it may lead to more rises in the direction of 152.30. As long as the “strong support” around 149.50 (level was at 149.00 yesterday) is not broken, we will continue to see the USD in a good light.
