To test major resistance at 144.00 – UOB Group

The US dollar (USD) has the potential to test major resistance at 144.00. In the long term, upward momentum is building; If the USD can break above 144.00, it could trigger a stronger rally towards 145.50, note UOB Group FX analysts Quek Ser Leang and Victor Yong.

USD/JPY may test 144.00 in the short term

24 HOUR VIEW: “Yesterday, we opined that ‘as long as the USD stays above 140.90, it could test 142.80 before settling.’ Subsequent price action did not turn out as expected as the USD briefly fell to 140.43 in NY trade and then rallied to close largely unchanged at 142.27 (-0.09% ). The USD continues to advance in early Asian trade today and could test major resistance at 144.00. On the downside, support can be found at 141.70 (minor support is at 142.40).”

WEEKS 1-3: “We indicated yesterday (September 18, spot at 142.00) that recent USD weakness has stabilized. We expected the USD to trade in a range between 140.00 and 144.00. USD traded on a firm note in Asian trade today and upside momentum is building, if it can break clear above 144.00 it could trigger a stronger recovery towards 145.50. The likelihood of the USD breaking clear above 144.00 will remain intact, provided the “strong support” level at 141.00 is not. violated.”