USD/JPY extends rebound above 150. Economists at Société Générale analyze the pair’s outlook.
Possibly forming double top
USD/JPY recently faced stiff resistance near 151.70/152 as it failed to break the 2022 highs. This indicates a possible double top formation. Daily MACD has been posting negative divergence since July indicating bearish momentum.
151.70/152 is likely to remain an important hurdle near term.
A price break i.e., a move below recent pivot low at 148.80 could mean a deeper decline. This can lead the pair lower towards 147.30 and 145.90/145.10, the 23.6% retracement from January.
