USD/JPY: Extra gains seem likely above 148.50 – UOB

Further advance in USD/JPY remains in the pipeline while above the 148.50 level, suggest UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: We indicated yesterday that “the bias for USD remains on the upside, but 150.00 is likely out of reach.” We also indicated that “the upside bias will fade if USD breaks below 149.05”. USD did not rise further but traded sideways between 149.13 and 149.66. Further sideways trading appears likely, probably between 149.05 and 149.70. 

Next 1-3 weeks: Our update from yesterday (28 Sep, spot at 149.45) is still valid. As highlighted, USD could advance further to 150.00 if it stays above 148.55 (no change in ‘strong support’ level from yesterday). If USD breaks below 148.55, it means that the USD advance that started early this week has ended.