USD/JPY: Can edge below 151.00 - UOB Group

US Dollar (USD) could edge below 151.00 vs Japanese Yen (JPY), but it remains to be seen if it can maintain a foothold below this level. In the longer run, there has been a tentative buildup in downward momentum; USD must break and remain below 151.00 before further weakness is likely, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Downward momentum builds up

24-HOUR VIEW: "The following are the excerpts from our update yesterday: 'There has been a tentative buildup in downward momentum. Today, USD is likely to edge lower, but it is unlikely to reach the major support at 151.00 (there is another support level at 151.60). Resistance is at 152.50; a breach of 152.85 would indicate that the buildup in momentum has faded.' USD then fell to a low of 151.32, closing on a soft note at 151.50 (-0.54%). There has been a tentative buildup in downward momentum, and USD is likely to continue to edge lower today. While it could break below 151.00, it remains to be seen if it can maintain a foothold below this level. On the upside, a breach of 152.15 (minor resistance is at 151.85) would mean that the buildup in momentum has faded."

1-3 WEEKS VIEW: "Last Friday (14 Feb, spot at 152.70), we noted that the recent 'upward momentum has largely faded.' We indicated that USD 'is likely to trade in a 151.00/155.00 range for the time being.' Yesterday, USD fell to a low of 151.32, and there has been a tentative buildup in downward momentum. That said, USD must break and remain below 151.00 before further weakness can be expected. The likelihood of USD breaking clearly below 151.00 will remain intact, provided that 152.75 is not breached."