USD/JPY: Major support at 145.80 is unlikely to come into view – UOB Group

US Dollar (USD) could break below 146.60 against Japanese Yen (JPY); the major support at 145.80 is unlikely to come into view. In the longer run, sharp drop in USD has scope to extend, but any decline may not break below 145.80, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Sharp drop in USD has scope to extend

24-HOUR VIEW: "After the sharp selloff in USD last Friday, we indicated yesterday that 'although further USD weakness seems likely, conditions are deeply oversold, and it remains to be seen whether USD can reach the 146.60.' We pointed out that 'resistance levels are at 147.65 and 148.50.' USD subsequently rose to 148.08 before dropping to a low of 146.85 in the late NY session. While conditions remain oversold, the buildup in downward momentum could lead to USD breaking below 146.60 today. The major support level at 145.80 is unlikely to come into view (there is another support level at 146.30). Today’s resistance levels are at 147.30 and 147.60."

1-3 WEEKS VIEW: "We highlighted yesterday (04 Aug, spot at 147.25) that the sharp drop in USD from last Friday 'has scope to extend.' However, we pointed out that 'any decline may not break below 145.80.' We will maintain the same view as long as long 149.00 (‘strong resistance’ level was at 149.50 yesterday) is not breached."