Ella 
24-hour view: The strong rise in the dollar pushed USD/JPY to a high of 142.67, which is surprising. While severely overbought, gains could extend to 143.20 before the risk of a pullback increases. On the downside, a break below 141.30 (with minor support at 141.80) would suggest that the currently strong upward pressure has eased.
Outlook for the next 1-3 weeks: Yesterday (July 31, market price 140.80) we emphasized that “the outlook for USD/JPY is uncertain, and it is expected to fluctuate between 138.50-141.95.” We did not expect the exchange rate to surge to a high of 142.67. Not surprisingly, upside momentum has strengthened. Although the short-term conditions are severely overbought, the exchange rate may continue to rise. However, it must break and sustain above 143.20 for a sustained rise. As long as it stays above 140.50 in the next few days, the upside risk remains. Looking ahead, the next significant resistance above 143.20 is at 145.00.
