USD/JPY: A break above 162.00 is highly possible – UOB Group

July 3, 2024 10:04 am

The US Dollar (USD) is expected to trade in a sideways range between 161.20 and 161.80. If it breaks above 162.00, the next level to watch is 163.00, UOB Group FX strategists suggest.

USD strength remains intact

24-HOUR VIEW: “We highlighted yesterday that USD ‘could test the resistance at 162.00 before the risk of a pullback increases.’ We added, ‘a sustained break above 162.00 appears unlikely.’ However, instead of testing 162.00, USD traded in a relatively quiet manner between 161.26 and 161.75, closing largely unchanged at 161.44 (-0.01%). The price action is likely part of a sideways trading phase. Today, we expect USD to trade between 161.20 and 161.80.”

1-3 WEEKS VIEW: “Not much has changed since our update yesterday (02 Jul, spot at 161.76). As highlighted, the USD strength that started in the middle of last month remains intact. From here, if USD breaks above 162.00, the next level to watch is 163.00. Overall, only a breach of 160.45 (‘strong support’ level previously at 160.30) would indicate that the USD strength has ended.”

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