USD/JPY: Pullback can extend to 153.20 – UOB Group
Pullback in the US Dollar (USD) could extend to 153.20, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.
No change of the ‘strong resistance’ level at 155.80
24-HOUR VIEW: “Yesterday, when USD was at 154.65, we were of the view that USD ‘could trade in a choppy manner, likely between 153.80 and 155.10.’ However, USD plummeted to 153.28, rebounding sharply to end the day unchanged at 154.65. The price action provides no further clarity, and we continue to expect USD to trade in a range, probably between 154.20 and 155.30.”
1-3 WEEKS VIEW: “Two days ago (18 Nov, spot at 154.20), we highlighted that ‘The current price action is likely part of a pullback that could extend to 153.20.’ We also highlighted that ‘should USD break above 155.80 (‘strong resistance’ level), it would mean that the current downward pressure has eased.’ Yesterday, USD dropped to 153.28 before rebounding strongly. The underlying tone still appears to be soft, and there is a chance for a decisive test of 153.20. On the upside, there is no change of the ‘strong resistance’ level at 155.80.”