USD/JPY faces a potential move to the 139.00 region in the next weeks, comment FX Strategists at UOB Group Quek Ser Leang and Peter Chia.

Key Quotes

24-hour view: “USD soared and closed at 137.52 (+0.75%) last Friday before jumping above 138.00 during Asian hours. While the rapid rise appears to be overdone, strong upward momentum suggest USD could advance further. That said. A break of 139.00 is unlikely for today (there is another resistance at 138.60). On the downside, a breach of 137.70 (minor support is at 138.00) would indicate that the current upward pressure has eased.”

Next 1-3 weeks: “Last Wednesday (24 Aug, spot at 137.00), we highlighted that USD could trade in a choppy manner, likely within a broad range of 135.20/138.00. USD soared above 138.00 today and the rapid surge in momentum is likely to lead to an advance to 139.00. In order to maintain the rapid build-up in momentum, USD should not move below 137.25 (‘strong support’ level) within these few days.”