Further upside in USD/JPY is still expected to retake the 134.00 region in the short-term horizon, note Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.
Key Quotes
24-Hour View: “We highlighted last Friday that ‘a break of 133.50 would not be surprising but major resistance at 134.20 may be just out of reach’. While the USD took 133.50, it fell sharply from 133.59. Upward momentum has barely improved and the USD is unlikely to advance further. Today, USD is more likely to trade between 132.55 and 133.55.”
Next 1-3 Weeks: “Last Friday (March 30, spot at 132.60), we highlighted that the recent USD weakness was over and the rebound in the USD could extend to 134.20. We continue to hold the same view. As long as the USD remains above 131.90 the current upside pressure will remain intact (the ‘strong support’ level was at 131.70 last Friday).”
