USD/JPY: A break above 161.50 is around the corner – UOB Group

The US Dollar (USD) is likely to trade with an upward bias. Conditions remain overbought, but USD is likely to continue to rise. Resistance levels are at 161.50 and 162.00, UOB Group FX strategists note.

Next resistance level above 161.50 is 162.00

24-HOUR VIEW: “We expected USD to trade in a range between 160.20 and 161.00 last Friday. However, USD rose to 161.27, dropped to 160.25, and then rebounded to close little changed at 160.83 (+0.06%). USD traded on a firm note in early Asian trade, and the bias is on the upside, However, it is left to be seen if any advance can break above 161.50. The next resistance at 162.00 is unlikely to come into view. Support is at 160.70, followed by 160.30.”

1-3 WEEKS VIEW: “We have expected a higher USD since the middle of last month. In our latest narrative from last Thursday (27 Jun, spot at 160.60), we highlighted that ‘while conditions are severely overbought, strong momentum suggests further USD strength.’ We added, ‘resistance levels are at 161.00 and 161.50.’ On Friday, USD rose above 161.00, reaching a high of 161.27. Conditions remain oversold, but as long as 159.80 (’strong support’ level previously at 159.40) is not breached, USD is likely to continue to rise. The next resistance level above 161.50 is 162.00.”