After the USD/JPY pair moved closer to 158.84, Quek Ser Leang and Lee Sue Ann of UOB continue to have a positive outlook. Although staying above this level is doubtful as 159.40 is viewed as distant resistance, an intraday push above 159.00 is expected. A decisive breach of 159.00 would target 159.40 over a period of one to three weeks, with firm support now elevated to 157.90.
Key Yen resistance is tested by dollar strength.
"24-HOUR VIEW: Last Thursday, the USD hit a high of 158.42. We stated that "the resumed upward trend suggests USD could increase further to 158.70" when the USD was at 158.40 in early Asian trading on Friday. "The key resistance at 159.00 is unlikely to come into view for now," we pointed out. The USD reached a high of 158.84, proving that our assessment was correct. The USD may surpass 159.00 today even though the bullish momentum has not grown significantly. It is unclear, though, if it will be able to hold on over this threshold. It is improbable that the following resistance level at 159.40 will materialize. 158.60 and 158.40 are the supports.
"1-3 WEEKS VIEW: We emphasized last Tuesday, May 12, at 157.30, that "any advance is projected to find severe resistance at 158.30, even though there is potential for USD to continue to rebound." We emphasized the following on Friday, May 15, at 158.40, after the USD broke over 158.30: The USD is probably going to continue to rise as a result of the increased momentum. 159.00 is the level to keep an eye on. All things considered, only a break of 157.40 (yesterday's "strong support" level was at 157.20) would suggest that the USD is not going to rise any higher. 157.90 is already a strong support level in the near term. Although we are changing the "strong support" threshold to 157.90, we still maintain the same opinion. The next level to keep an eye on is 159.40 if the USD breaks clearly above 159.00.
Key Yen resistance is tested by dollar strength.
"24-HOUR VIEW: Last Thursday, the USD hit a high of 158.42. We stated that "the resumed upward trend suggests USD could increase further to 158.70" when the USD was at 158.40 in early Asian trading on Friday. "The key resistance at 159.00 is unlikely to come into view for now," we pointed out. The USD reached a high of 158.84, proving that our assessment was correct. The USD may surpass 159.00 today even though the bullish momentum has not grown significantly. It is unclear, though, if it will be able to hold on over this threshold. It is improbable that the following resistance level at 159.40 will materialize. 158.60 and 158.40 are the supports.
"1-3 WEEKS VIEW: We emphasized last Tuesday, May 12, at 157.30, that "any advance is projected to find severe resistance at 158.30, even though there is potential for USD to continue to rebound." We emphasized the following on Friday, May 15, at 158.40, after the USD broke over 158.30: The USD is probably going to continue to rise as a result of the increased momentum. 159.00 is the level to keep an eye on. All things considered, only a break of 157.40 (yesterday's "strong support" level was at 157.20) would suggest that the USD is not going to rise any higher. 157.90 is already a strong support level in the near term. Although we are changing the "strong support" threshold to 157.90, we still maintain the same opinion. The next level to keep an eye on is 159.40 if the USD breaks clearly above 159.00.
