USD/JPY: Bulls can potentially reach 155.45 – UOB Group

The US Dollar (USD) is likely to continue to rise, potentially reaching 155.45. The major resistance at 156.00 is unlikely to come into view. 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.

Further USD strength towards 156.00 is likely

24-HOUR VIEW: “The strong surge that sent USD soaring to 154.92 was surprising (we were expecting range trading). Not surprisingly, upward momentum is robust. Today, USD is likely to continue to rise, potentially reaching 155.45. The major resistance at 156.00 is unlikely to come into view for now. On the downside, any pullback is likely to stay above 154.00, with minor support at 154.35.”

1-3 WEEKS VIEW: “We indicated two days ago (11 Nov, spot at 152.80), that the recent “upward momentum has eased.” We expected USD to trade in a 151.30/154.70 range. We did not expect the momentum to rebuild so quickly, as USD soared and broke above 154.70 (high has been 154.92). The increase in momentum suggests further USD strength towards 156.00. To keep the momentum going, USD must remain above the ‘strong support’ level, currently at 153.35.”