Ella 
24-hour view: We highlighted yesterday that “market conditions remain severely overbought and USD/JPY is unlikely to rise further. During the London session, USD/JPY fell to 142.22 before bouncing back to 143.47, holding at the New York close Unchanged at 143.32. Overbought conditions have eased and USD/JPY has room to move higher today. However, any gains will face strong resistance at 144.00. Initial support is at 142.80, followed by 142.40.
Outlook for the next 1-3 weeks: Our update from yesterday (August 2nd when the price was at 143.10) is still valid. As highlighted, while USD/JPY may continue to rise, it remains to be seen whether there will be enough momentum to push it towards the June high around 145.00. As long as USD/JPY remains above 142.00 (“strong support” at 141.50 yesterday), the upside risks remain unchanged.
