The ongoing uptrend in USD/JPY could extend to the 148.00 level ahead of 148.50, comment Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group.

Key Quotes

24-hour view: “We highlighted yesterday that USD ‘could rise above 147.00 but is unlikely to challenge the major resistance at 147.65’. The anticipated USD strength exceeded our expectations as USD rose to a high of 147.67. While overbought, the advance could test 148.00 first before the risk of a pullback would increase. For today, 148.50 is unlikely to come under challenge. On the downside, a breach of 146.70 (minor support is at 147.00) would indicate that USD is unlikely to advance further.”

Next 1-3 weeks: “Yesterday (13 Oct, spot at 146.80), we indicated that the strong rise in USD has room to extend. We added, ‘the level to focus on is at the 1998 high near 147.65’. We did not quite expect USD to reach 147.65 so quickly as it soared to a high of 147.67 in NY trade. Further USD strength is not ruled out but in view of the overbought conditions, any advance is likely to be at a slower pace. The next level to watch is at 148.00, followed by 148.50.”