US Dollar (USD) could rise further and potentially test 155.20; any further advance is unlikely to reach 155.55. In the longer run, the price action suggests USD is likely to trade with an upside bias; any gains may be capped near 155.55, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
USD/JPY is likely to trade with an upside bias
24-HOUR VIEW: “We did not expect the strong advance in USD that reached a high of 155.04 yesterday (we had anticipated sideways trading). Upward momentum has increased, but not significantly. Today, USD could rise and potentially test 155.20. Based on the current momentum, any further advance is unlikely to reach 155.55. On the downside, support levels are at 154.55 and 154.30.”
1-3 WEEKS VIEW: “In our most recent narrative from Tuesday (11 Nov, spot at 154.15), we highlighted that USD ‘is likely to trade in a range for now, likely between 153.10 and 155.00’. Yesterday, USD rose above 155.00 (high was 155.04). The price action suggests USD is likely to trade with an upside bias, but given that there has been no significant increase in upward momentum, any gains may be capped near 155.55. On the downside, if USD breaks below the ‘strong support’ level, now at 153.95, it would indicate that the upside bias has faded.”