SocGen: USD/JPY poised for brief pullback towards 145 before targeting 152

SocGen anticipates a temporary pullback in USD/JPY towards 145, followed by a potential rally towards the significant resistance level near 152.

Key Points:

• Recent Performance:

  • USD/JPY has formed a higher trough at 141.60 and is currently in a short-term rebound, having surpassed its 50-day moving average (DMA) at 145 and recently tested the pivot high of 149.45.

• Technical Indicators:

  • The daily MACD indicator is moving into positive territory, suggesting a resurgence of upward momentum for the currency pair.

• Potential Pullback:

  • While a brief pullback to the 145 level cannot be ruled out, holding this moving average could lead to an extended upward movement.

• Resistance Levels:

  • Key resistance is observed at 152, which corresponds to the high from November 2023 and the low from May 2024, marking a critical area for future price action.

Conclusion:

SocGen suggests that USD/JPY is likely to experience a brief pullback to the 145 level before potentially resuming its upward trajectory towards the 152 resistance level. Monitoring the 50-DMA will be crucial, as maintaining this support could signal further bullish momentum for the currency pair.

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This article was written by Adam Button at www.forexlive.com.