USD/JPY: Advance is unlikely to breach the major resistance at 152.00 – UOB Group

Further US Dollar (USD) strength appears likely; any advance is unlikely to breach the major resistance at 152.00. In the longer run, USD weakness appears to have stabilised; it is likely to trade in a range of 148.65/152.00 for now, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

USD weakness appears to have stabilised

24-HOUR VIEW: “Our view for USD to consolidate in a range of 149.15/150.55 yesterday was incorrect. Instead of consolidating in a range, USD soared to a high of 151.34, closing on a strong note at 151.19 (+0.77%). While further USD strength appears likely, any advance is unlikely to breach the major resistance at 152.00. On the downside, support levels are at 150.90 and 150.50.”

1-3 WEEKS VIEW: “Last Thursday (05 Dec, spot at 150.35), we highlighted that the recent USD weakness ‘appears to have stabilised.’ We also highlighted that ‘the current price movements are likely the early stages of a range trading phase, probably between 148.65 and 152.00.’ There is no change in our view.”