In light of the ongoing price action, USD/JPY could attempt a move to the key 140.00 region in the next few weeks, comment Economist Lee Sue Ann and Markets Strategist Que Ser Leang at UOB Group.

Key Quotes

24-hour view: “We did not anticipate USD rising to a high of 139.47 yesterday (we were expecting it trade in a range). While there is no significant increase in momentum, USD could break above the major resistance at 139.60. The next resistance at 140.00 could be out of reach today. Support is at 139.00, followed by 138.65.”

Next 1-3 weeks: “Two days ago (23 May, spot at 138.55), we highlighted that short-term upward momentum appears to be building again and the odds of USD breaking clearly above 139.00 have increased. We added, ‘the next level to focus on is 139.60’. Yesterday (24 May, spot at 138.55), USD took out 139.00 and rose to 139.47. We continue to expect USD to strengthen, albeit likely at a slower pace. Resistance levels are at 139.60 and 140.00. On the downside, a breach of 138.10 (‘strong support’ level previously at 137.55) would indicate that the USD strength that started early last week has ended. Looking ahead, if USD breaks above 140.00, the focus will shift to 140.50.”