In light of the recent upside, USD/JPY could now challenge the 1998 high at 147.65, comment UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia.

Key Quotes

24-hour view: “Not surprisingly, the sharp rally in USD is deep in overbought territory. However, upward momentum is not showing signs of easing just yet and USD could rise above 147.00. The next major resistance at 147.65 is unlikely to come under challenge. Support is at 146.40, followed by 146.10.”

Next 1-3 weeks: “The strong rise in USD over the past week has room to extend. The level to focus on is at the 1998 high near 147.65. On the downside, a breach of 145.40 would indicate that the upward pressure has eased.”