The UOB Group’s Markets Strategist Quek Ser Leang and Senior FX Strategist Peter Chia stated that as of recent, USD/JPY could challenge the 1998 high at 147.65.
In the last 24 hours, the sharp rally in USD is deep in the overbought territory; nevertheless, upward momentum is not showing signs of easing, and USD could rise above 147.00.
The following key resistance at 147.65 will most probably not experience any challenge. The substantial rise in USD in the past week has room to expand. The level to monitor is 1998 high, near 147.65. On the downside, a breach of 145.40 would show that the upward pressure has reduced.