USD/JPY: Any advance may be limited to 147.20 - UOB Group

Strong momentum is likely to continue to outweigh overbought conditions, but any advance may be limited to 147.20. In the longer run, US Dollar (USD) outlook remains positive against Japanese Yen (JPY); the next levels to watch are 147.20 and 147.60, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

Next levels to watch are 147.20 and 147.60

24-HOUR VIEW: "Subsequent to the surge in USD two days ago, we pointed out yesterday that 'strong momentum suggests further USD strength, but overbought conditions may limit any gains to a test of 146.55.' We added, 'the major resistance at 146.95 is likely out of reach.' We had underestimated the strength of the momentum, as USD soared to 146.97. USD eased off from the high to close at 146.55 (+0.35%). The strong momentum is likely to continue to outweigh the overbought conditions. However, this time around, any further USD strength may be limited to 147.20. The next resistance at 147.60 is unlikely to come under threat. Support is at 146.40, followed by 146.00."

1-3 WEEKS VIEW: "Yesterday (08 Jul, spot at 146.15), we indicated that 'the USD outlook is positive now, and the level to watch is 146.95.' We did not expect USD to reach 146.95 so soon, as it rose to a high of 146.97 in NY trade. We continue to view USD positively, and the next levels to watch are 147.20 and 147.60. We will maintain our outlook as long as USD holds above the 'strong support' at 145.20 (level was at 144.70 yesterday)."