Japanese Yen: Bullish momentum extends against US Dollar – Societe Generale
Societe Generale’s Kenneth Broux highlights a sharp USD/JPY pullback, with the pair breaking key graphical support at 155 and trading below its 200-day moving average. The bank flags resistance near 156.25 and downside objectives at 152.00/151.60 and 149.50.
Kenneth Broux of Societe Generale notes a significant USD/JPY decline, as the currency pair breaks down through a crucial support level at 155 and falls below its 200-day moving average. Societe Generale identifies key resistance near 156.25, with downside targets at 152.00/151.60 and 149.50. The bank emphasizes technical, momentum, and positioning factors, rather than a repeat of 2024's volatility, as the main drivers of the yen's resurgence.
The USD/JPY pair has recently slipped below its 200-day moving average (158.40) and pierced the 155 support formed by the May and August lows, indicating sustained downward pressure. If a short-lived rebound occurs, the 156.25 peak from earlier this week might serve as resistance. The next possible targets could be the January lows of 152.00/151.60 and the 149.50 projection.
Since the beginning of August, USD/JPY has weakened by nearly 7%, which is only half of the summer 2024 collapse, when unilateral intervention and the unwinding of leveraged carry trades led to high volatility, including the VIX, and boosted gold's appeal as a diversification asset.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
