USD/JPY: Bulls set to test 148.30 – UOB Group

The US Dollar (USD) is expected to edge lower; given that momentum is not strong, any decline is unlikely to break below 146.00. Otherwise, a breach of 148.30 would mean the weakness in USD has stabilised, UOB Group FX analysts Quek Ser Leang and Lee Sue Ann note.

The closest resistance is at 148.30

24-HOUR VIEW: “Yesterday, we noted ‘there has been no clear increase in either upward or downward momentum.’ We expected USD to ‘continue to trade in a range, probably between 146.50 and 148.00.’ Our view of range trading was not wrong, as USD traded in a range of 146.59/147.94, closing slightly lower by 0.25% (146.82). There has been a slight increase in momentum. Today, we expect USD to edge lower. Given that momentum is not strong, any decline is unlikely to break below 146.00 (minor support is at 146.50). Resistance is at 147.55, followed by 148.00.”

1-3 WEEKS VIEW: “Our update from two days ago (12 Aug, spot at 146.90) remains valid. As highlighted, downward momentum is beginning to wane, and a breach of 148.30 (no change in ‘strong resistance’ level) would mean that the weakness in USD has stabilised.”