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.
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This article was written by Eamonn Sheridan at www.forexlive.com.
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