USD/JPY: The levels to monitor are 157.00 and 157.50 155.36 – UOB Group

The US Dollar (USD) is likely to continue to rise; the levels to monitor are 157.00 and 157.50. Momentum remains strong; the next technical objective is at 158.00, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

The next technical objective for USD/JPY is at 158.00

24-HOUR VIEW: “Following the sharp rise in USD two days ago, we noted in early Asian trade yesterday that ‘momentum remains robust.’ We were of the view that ‘while USD could break above 156.00, it might not be able to maintain a foothold above this level.’ We underestimated the strength of the advance, as USD soared to 156.42, closing at 156.25 (+0.51%). The impulsive momentum is likely to continue to outweigh the overbought conditions. In other words, USD is likely to continue to rise. The levels to monitor are 157.00 and 157.50. To sustain the overbought momentum, USD must remain above 155.55 (minor support is at 156.05).”

1-3 WEEKS VIEW: “We turned positive in USD two ago (13 Nov), when it was at 154.70, indicating that ‘the increase in momentum suggests further USD strength towards 156.00.’ Yesterday, USD rose and surpassed 156.00. Momentum remains strong, and the next technical objective is at 158.00. To keep the momentum going, USD must remain above 154.95 (‘strong support’ level was at 154.00 yesterday).”