USD/JPY: Has a chance to rebound further – UOB Group
US Dollar (USD) could rebound further vs the Japanese Yen (JPY); any advance is unlikely to break above 150.55. In the longer run, momentum has slowed; as long as 151.05 is not breached, there is still a slim chance for USD to drop to 148.63, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
Any advance is unlikely to break above 150.55
24-HOUR VIEW: "USD fell sharply to a low of 148.90 last Friday. Yesterday, we highlighted that 'there is room for USD to retest the 148.90 before stabilisation is likely.' We added, 'the significant support level at 148.63 is unlikely to come into view.' Our expectations were not wrong, as USD dropped to 148.84, rebounding strongly to close higher by 0.28% at 149.71. Today, USD could rebound further, but any advance is unlikely to break above 150.55. The strong resistance at 151.05 is unlikely to come under threat. Support is at 148.50, followed by 149.20."
1-3 WEEKS VIEW: "In our latest narrative from last Friday (21 Feb, spot at 149.60), we indicated that 'while USD is likely to decline further, short-term conditions are deeply oversold, and the significant support at 148.63 may not come into view so soon.' USD fell and eked out a fresh low 148.84 yesterday and then rebounded strongly. Downward momentum has slowed with the rebound, but as long as 151.05 (no change in ‘strong resistance’ level) is not breached, there is still a slim chance for USD to drop to 148.63."
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