Synopsis:
SocGen anticipates USD/JPY to continue its upward trajectory, targeting 161.80 initially and 163.75 subsequently. The pair has broken above an ascending triangle pattern, indicating a resumption of the uptrend, supported by strong momentum.
Key Points:
- Technical Breakout: USD/JPY defended the 50-DMA last month and broke above an ascending triangle, confirming an uptrend.
- Momentum Indicators: Daily MACD remains positive, signaling continued upward momentum.
- Target Levels: Next objectives are 161.80 and 163.75.
- Support Zone: In case of a short-term pullback, 158.80/158.00 should act as potential support.
Conclusion:
SocGen expects USD/JPY to drift towards 161.80, with further potential up to 163.75, supported by technical indicators and strong momentum. A support zone around 158.80/158.00 should contain any short-term pullbacks.
For bank trade ideas, check out eFX Plus. For a limited time, get a 7 day free trial, basic for $79 per month and premium at $109 per month. Get it here.
This article was written by Eamonn Sheridan at www.forexlive.com.
Related Articles
Crude Oil Technical Analysis – Testing a key resistance
Fundamental OverviewCrude oil continues to remain supported as the buyers might be...
BOE’s Mann: Policy needs to stay restrictive to purge inflationary behaviours
It is better to remain restrictive for longerWe can cut more aggressively...
Gold Technical Analysis – The fall in real yields drives the price higher
Fundamental OverviewThe Fed this week finally started its easing cycle and decided...
BOJ governor Ueda: Easy monetary conditions are in place as real rates remain negative
US economy achieving soft landing is our main scenarioIf US economy achieves...
Leave a comment