UD Dollar (USD) has gathered downward momentum vs Japanese Yen (JPY), but it might not be able to break below 145.00. In the longer run, oversold weakness has not stabilized; there is a chance for USD to drop below 145.00 again before the risk of another rebound increases, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD can drop below 145.00 again
24-HOUR VIEW: “Yesterday, we were of the view that USD ‘is likely to trade in a range between 146.00 and 149.00.’ USD traded in a 145.95/148.12 range and closed at 146.28. While the decline in the early Asian trade today has gathered momentum, USD might not be able to break below 145.00 (there is another support level at 144.40). Resistance levels are at 146.10 and 146.65.”
1-3 WEEKS VIEW: “When USD was at 147.50 yesterday (08 Apr), we pointed out that ‘the oversold weakness in USD has not stabilized.’ We indicated that ‘there is a chance for USD to drop below 145.00 again before the risk of another rebound increases.’ We will continue to hold the same view provided that 148.50 (‘strong resistance’ level was at 149.00 yesterday) is not breached. Looking ahead, if USD closes below 145.00, it will increase the likelihood of a drop to the significant support at 143.50.”