USD/JPY Momentum Slowing as Break Above 154.90 in Sight

UOB strategist Quek Ser Leang reports that despite a sharp drop in USD/JPY to 153.23, the downward momentum has not increased by much.

The pair closed at 153.54 with an intraday bias tilted lower, but expected to stay within the range of 153.05-154.30.

On a 1-3 week horizon, Quek Ser Leang has held a negative USD stance since early this month, indicating that the price action suggests USD is likely to continue to weaken.

The strategist notes that downward momentum is slowing, and the odds of revisiting the year-to-date low of 152.08 are diminishing.

A break above 154.90 would signal stabilisation, but the strong resistance at this level makes it unlikely for USD to come under threat.