US Dollar (USD) could test 154.50 before a pullback can be expected. In the longer run, sharp increase in upward momentum could lead to further USD advance toward 154.90, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/JPY might even advance toward 154.90

24-HOUR VIEW: "We did not expect USD to soar to 154.44 (we were expecting range-trading). Although the sharp rise appears excessive, USD could test the 154.50 level before a pullback can be expected. We do not expect 154.95 to come into view. To sustain the momentum, USD must hold above 153.30 (with minor support at 153.60)."

1-3 WEEKS VIEW: "Yesterday (30 Oct, spot at 152.50), we highlighted that 'the outlook is mixed and for the time being, USD could trade in a range between 151.00 and 153.30'. We did not expect the sharp rise that sent USD to a high of 154.44. The rapid increase in upward momentum could lead to further advance toward 154.90. On the downside, if USD breaks below 152.50 (‘strong support’ level), it would mean that the current upward pressure has faded."