USD/JPY: Upward bias to remain intact as long as 156.80 is not breached – UOB Group

US Dollar (USD) could rise, but it does not appear to have enough momentum to reach 159.00. In the longer run, USD is expected to trade with an upward bias; any advance is expected to face significant resistance at 159.00, UOB Group’s FX analysts Quek Ser Leang and Lee Sue Ann note.

USD to trade with an upward bias for now

24-HOUR VIEW: “USD plummeted to 156.22 yesterday, rebounding strongly to close at 157.60 (+0.21%). It continues to rise in early Asian trade today. Given the increasing momentum, USD could continue to rise. However, it does not appear to have enough momentum to reach 159.00 (there is another resistance level at 158.50). On the downside, a breach of 157.20 (minor support is at 157.60) would indicate that USD is not rising further.”

1-3 WEEKS VIEW: “USD broke above the 158.10 resistance in early Asian trade today. Upward momentum is building, and we expect USD to trade with an upward bias for now. However, any advance is expected to face significant resistance at 159.00. The upward bias will remain intact as long as 156.80 is not breached.”