Title : USD/JPY risks a probable test of 143.00 – UOB

Oct 5, 2022 2:17 AM ET

By:AnalysisWatch

In the view of economist Lee Sue Ann and market strategist Quek Ser Leang of UOB Group's Global Economics & Markets Research, USD/JPY could pull back to the 143.00 area in the coming weeks.

Yesterday, we incorrectly predicted that the USD would "trade sideways between 144.20 and 145.15" yesterday. The USD fell to a low of 143.88 before extending its decline in early Asian trading. Bearish momentum is building rapidly, and the risk is that the dollar will break 143.50.

However, the dollar is unlikely to challenge the next major support at 143.00. " "On the upside, 144.55 is likely to be strong enough to cap any intraday bounce (minor resistance is at 144.20)."

Next 1-3 weeks: "Two days ago (Oct 03, spot at 144.70), we highlighted that the recent bullish momentum build-up has faded and expect USD to trade between 143.50 and 145.60. Yesterday, the USD fell to a low of 143.88 before extending its decline today.

The short-term bearish momentum is consolidating and we expect the USD to trade with a bearish bias towards 143.00 in the coming days. Our view will be invalidated if the USD breaks above the "strong resistance" level, currently at 144.90."