USD/JPY: Bears push towards 140.80 – UOB Group

The US Dollar (USD) likely to continue to weaken. The next significant support level is some distance away at 140.80, but it remains to be seen if this level will come into view, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

USD slides towards 140.80

24-HOUR VIEW: “The outsized selloff that sent USD plunging by 1.89% (NY close of 146.45) was surprising. While the sharp drop has not stabilised and USD is likely to continue to weaken, the potential for further decline is unclear. Support levels are at 144.00 and 143.00, while resistance levels are at 146.50 and 147.50.”

1-3 WEEKS VIEW: “Last Friday (02 Aug, spot at 149.90), we pointed out the recent ‘USD weakness is still intact, and the next level to monitor to watch is 148.20.’ We did not anticipate the manner in which USD plunged to 146.41. Clearly, the weakness in USD has not stabilised. The next significant support level is some distance away at 140.80, but it remains to be seen if this level will come into view. Overall, the USD weakness is intact as long as 148.60 (‘strong resistance level was at 152.00 last Friday) is not breached.”