USD/JPY: USD can break above 156.00 – UOB Group

Momentum remains robust; the US Dollar (USD) could break above 156.00 but might not be able to maintain a foothold above this level. In the longer run, increase in momentum suggests further USD strength towards 156.00, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

Increase in momentum suggests further USD strength

24-HOUR VIEW: “USD surged two days ago. Yesterday, we noted that ‘upward momentum is robust,’ and we expected USD to ‘continue to rise, potentially reaching 155.45.’ We highlighted, that ‘On the downside, any pullback is likely to stay above 154.00, with minor support at 154.35.’ Our view strong USD view was validated, as after dropping briefly to 154.33 during NY session, USD soared to 155.62. Momentum remains robust, and this will likely outweigh the overbought conditions. That said, while USD could break above 156.00 today, it might not be able to maintain a foothold above this level. On the downside, support levels are at 155.10 and 154.70.”