Japanese Yen: Breakout to set direction against US Dollar - Societe Generale
Societe Generale strategists Morning Briefing highlight USD/JPY’s sharp rebound from a September low near 152.90, with the pair now capped by key moving averages. They note a sideways pattern between 156.35 and 159, with a break of this range set to confirm direction.
Societe Generale analysts in their Morning Briefing observe USD/JPY making a swift recovery from a September low around 152.90. The currency pair is now being tested by significant moving averages, namely its 50-day and 200-day averages. A shift beyond these moving averages will determine the subsequent trend. Presently, USD/JPY is oscillating between the levels 156.35 and 159, with a breakout from this range expected to dictate the direction.
FOMC minutes and Bank of Japan (BoJ) statements remain central to the focus, as they revolve around interest rates and expectations. After forming a low near 152.90 in September, USD/JPY is now confronting the intersection of its 50-day and 200-day moving averages. In the short term, price action has become sideways, confined within the range of 156.35 and 159; a breach of either threshold will be vital for confirming the forthcoming direction.
Should USD/JPY surpass 159, the rally may ascend towards the graphical peaks of March and April, specifically the levels of 160.40 and 160.70.
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