The US dollar (USD) has room to test 148.80 before leveling off, while the major resistance at 149.55 is unlikely to be threatened, according to UOB Group FX analysts Quek Ser Leang and Peter Chia. Longer-term, USD/JPY is expected to trade within a mixed range between 146.55 and 149.55 for now.
24-hour view: rapid moves continue
Last Friday, USD dropped sharply to 146.80 before rebounding to close at 147.38 (-0.74%). The currency opened higher today, continuing its rapid advance. Analysts note that while USD may test 148.80, breaking above this level is unlikely to challenge 149.15. On the downside, support is seen at 147.90 and 147.50.
1-3 week view: mixed outlook prevails
In the previous update (30 Sep, spot at 148.55), UOB highlighted that although USD showed positive momentum, it remained uncertain whether the pace could be sustained. USD subsequently reached 149.13 but fell sharply last Friday, briefly breaking the ‘strong support’ level. Despite these swings, downward momentum has not significantly built up. Overall, USD/JPY is expected to continue trading within a range of 146.55 to 149.55.
