USD/JPY: Likely to continue rising – UOB Group

USD is likely to continue to rise; the level to watch is 158.90, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

The level to watch is 158.90

24-HOUR VIEW: "Following the strong rise in USD last Friday, we indicated yesterday that 'strong momentum indicates further USD strength, but deeply overbought conditions suggest that 158.90 is likely out of reach today'. We highlighted that 'any pullback today is likely to remain above 157.40, with minor support at 157.75'. The anticipated advance did not quite materialize, as USD edged higher within a range of 157.52/158.20, closing modestly higher at 158.15 (+0.17%). While upward momentum is beginning to slow, there is scope for USD to rise further today. That said, any advance is likely part of a 157.60/158.40 range. In other words, USD is unlikely to break clearly above 158.35."

1-3 WEEKS VIEW: "After USD soared last Friday, we indicated yesterday (12 Jan, spot at 158.00) that 'with rapidly increasing upward momentum, USD is likely to continue to rise'. We pointed out that 'the level to watch is last year’s high, near 158.90'. We will continue to hold the same view as long as it holds above the ‘strong support’ at 157.00 (no change in level)."