USD/JPY: There is still scope for a breakout of 150.00 – UOB

USD/JPY could still advance further and surpass the key 150.00 hurdle in the short-term horizon, according to UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: We highlighted yesterday that “the strong rebound in USD has room to extend, but a clear break of 150.00 is unlikely.” Our view was not wrong as USD rose to a high of 149.90. The upside bias remains intact, and today there is a chance for USD to break above 150.00. However, the next resistance at 150.50 is unlikely to come into view. Support is at 149.60, followed by 149.30. 

Next 1-3 weeks: Our update from yesterday (02 Oct, spot at 149.50) is still valid. As highlighted, USD could edge upwards, but any advance is likely part of a higher range of 148.50/150.50. In other words, a clear break above 150.50 is unlikely.