JP Morgan - "We continue to see upside risks for USD/Asia despite the late-week reversal. As mentioned in recent updates, the recent trends suggest follow-through in the coming weeks. Again, this follows the reversal from a number of important levels against the USD and for the ADXY amid an oversold framework that has yet to be unwound. Still, for the very short term, some pause to the recent USD strength is likely. This is in line with the late-week reversal for the broad USD picture. Also, this is consistent with the proximity of the next line of key resistance levels which have capped the upside for now. In this regard, the 114.75/89 area and July low for the ADXY remains critical.
With regards to the USD pairs, USD/INR remains our favorite in line with the recent breakout above the June high. as the medium term rally phase still appears incomplete. While the 61.80/62.00 zone has capped the upside bias for now, there is still little evidence of a topping pattern. In turn, corrective retracements are viewed as buying opportunities particularly against the July low. While intact, a closer test of the 63.00/63.70 zone which includes the channel resistance from the 2011 low is likely in the coming weeks.
While key initial resistance levels for USD/KRW have thus far capped the upside, the short term risks continue to suggest a deeper corrective phase to the decline from the June high is likely. This follows the effective test and hold of the critical 1110/1100 support area which includes the early-June low, the uptrendline from the January low, the 76.4% retracement of the advance from the May low and the 200-day moving average. Again, this confluence of support remains an ideal area for a base. Moreover, the five- wave decline from the June high and oversold and diverging momentum setup are still lined up for an upside retracement. A break above the 1127/1130 resistance zone should set the stage for a deeper retracement into the 1150/1155 area (76.4% retracement from June)."