VOT Research Desk
Extra downside could cause the USD/JPY to revisit the 135.50 level in the coming weeks, according to UOB Group Economist Lee Sue Ann and Markets Strategist Quek Ser Leang. 24-hour perspective: “USD temporarily rose to 139.89 in New York trade before falling to 137.64.
The US dollar sank more in early Asian trade, and the sharp negative trend is expected to continue. The levels of support to watch are 136.40 and 135.50. The latter level is unlikely to be seen today.
On the upside, 138.05 is now a rather firm resistance level (a minor resistance level is at 137.80).” Within the next 1-3 weeks: “In our most recent narrative from Monday (29 November, spot at 138.75), we stated that more USD weakness is not ruled out, although a slide to the next support level at 137.00 is not that high.
In New York trade, the USD momentarily surpassed our ‘strong resistance’ level of 139.60 (high of 139.89) before falling.
The significant spike in momentum is anticipated to push the USD down to 136.40, possibly as low as 135.50. 138.55 is the ‘strong resistance’ level.”
