USD/JPY: A surpass of 141.00 seems not favoured – UOB

An advance past the 141.00 region in USD/JPY seems to be losing momentum for the time being, comment UOB Group’s Economist Lee Sue Ann and Markets Strategist Quek Ser Leang.

Key Quotes

24-hour view: “Yesterday, we highlighted that ‘bias for USD is tilted to the downside but any decline is expected to face strong support at 139.30’. We added, ‘Resistance is at 140.20, followed by 140.40’. USD dropped to 139.30 in Asian trade, popped to a high of 140.37 and then dropped to a low of 139.22 in NY trade. USD continues to decline in early Asian trade today and the bias remains on the downside. However, any decline is not expected to break below 138.30. Resistance is at 139.60, followed by 140.00.”

Next 1-3 weeks: “Our update from yesterday (312 May, spot at 139.80) still stands. As highlighted, the sharp pullback from 140.93 and waning momentum suggest USD is unlikely to break above 141.00 this time around. From here, USD is likely to trade in a range between 137.00 and 141.00.”