USD/JPY: Upside momentum gathers traction – UOB

According to FX Strategists at UOB Group Quek Ser Leang and Peter Chia, further gains in USD/JPY need to surpass 145.00.

Key Quotes

24-hour view: “Our expectations for USD to ‘rise above 145.00’ yesterday did not materialize as it retreated from a high of 144.87 (low has been 143.89). Upward pressure has eased and the current price movement is likely part of a consolidation phase. In other words, USD is likely to trade sideways for today, expected to be between 143.70 and 144.70.”

Next 1-3 weeks: “Our update from two days ago (27 Sep, spot at 144.30) still stands. As highlighted, upward momentum is beginning to build but USD has to close above 145.00 before a sustained advance is likely. The odds for USD to close above 145.00 are not high but they would remain intact as long as 143.40 (‘strong support’ level was at 142.80) is not breached.”