USD/JPY: A move to 150 now appears on the horizon – UOB

In the view of Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia at UOB Group, USD/JPY now targets the key 150.00 region in the next few weeks.

Key Quotes

24-hour view: We indicated yesterday that “the bias for USD is tilted to the upside”. However, we were of the view that “any advance is still unlikely to reach 149.50.” USD then rose more than expected, reaching a high of 149.72. The bias remains tilted to the upside, but today, 150.00 is likely out of reach. The upside bias will fade if USD breaks below 149.05 (minor support is at 149.20). 

Next 1-3 weeks: Two days ago (26 Sep, spot at 148.95), we indicated that “upward momentum has improved further and USD could advance to 149.50.”  Yesterday (27 Sep), USD rose to a high of 149.72. Upward momentum continues to improve, albeit not much. USD could advance further to 150.00 if it stays above 148.55 (‘strong support’ level previously at 148.10).