USD/JPY: Bears push towards 148.20 – UOB Group

Further US Dollar (USD) weakness is not ruled; the significant support at 148.20 is likely out of reach, UOB Group FX strategists Quek Ser Leang and Lee Sue Ann note.

USD may push towards 148.20

24-HOUR VIEW: “Yesterday, while we held the view that ‘the sharp drop in USD has scope to extend,’ we indicated that ‘it is yet to be determined if any further decline can reach the major support at 151.30.’ We clearly did not anticipate how the price action developed, as USD sold off sharply, reaching a low of 149.60. Further USD weakness is not ruled today. However, severely oversold conditions suggest the significant support level at 148.20 is like lot of reach. There is another support level at 149.00. To maintain the momentum, USD must remain below 151.30 with minor resistance at 150.50.”

1-3 WEEKS VIEW: “We indicated yesterday that ‘there is room for USD to weaken, but any decline is likely part of a lower trading range of 150.50/155.00.’ Our view was invalidated quickly, as USD plunged below 150.50 (low of 149.60). The price action suggests the weakness in USD is still intact. The level to watch is 148.20. The USD weakness is intact as long as 152.80 is not breached.”