USD/JPY: Likely to rise above 155.00 – UOB Group
There is a chance for US Dollar (USD) to rise above 155.00; a continued advance above this level is unlikely. In the longer run, the price action suggests USD is likely to trade with an upside bias; any gains may be capped near 155.55, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
USD is likely to trade with an upside bias
24-HOUR VIEW: "USD rose sharply to a high of 155.04 two days ago. Yesterday, when it was at 154.80, we highlighted that 'upward momentum has increased, but not significantly'. We were of the view that USD 'could rise and potentially test 155.20'. However, after rising to a high of 155.01, USD dropped sharply to 154.11 before rebounding. Today, there is a chance for USD to rise above 155.00, but given the lackluster upward momentum, a continued advance above this level is unlikely. On the downside, support levels are at 154.30 and 154.10."
1-3 WEEKS VIEW: "We continue to hold the same view as yesterday (11 Nov, spot at 154.15). As highlighted, USD 'is likely to trade with an upside bias, but given that there has been no significant increase in upward momentum, any gains may be capped near 155.55'. Overall, only a breach of 153.95 (no change in ‘strong support’ level) would indicate that the upside bias has faded."