USD/JPY: Set to recover further to 145.50 – UOB Group

Sharp advance reinforces view that the US Dollar (USD) could recover further to 145.50, UOB Group FX strategists Quek Ser Leang and Peter Chia note.

USD/JPY can go up to 145.50

24-HOUR VIEW: “We expected USD to trade between 143.00 and 144.20 yesterday. USD subsequently traded in a wider range of 143.11/144.68, closing at 143.21 (-0.27%). The price action still seems to be part of a range trading phase, even though it is likely to trade in a lower range of 142.30/144.10 today.”

1-3 WEEKS VIEW: “Our update from two days ago (23 Sep, spot at 144.20) remains valid. As highlighted, the strong advance in USD last week reinforces our view that USD could recover further to 145.50. Our view will be invalidated if USD breaks below 141.90 (no change in ‘strong support’ level).”