USD/JPY retreats after rejecting the 50-Day Moving Average at 146.41 on Thursday. Economists at Société Générale analyze the pair’s technical outlook.
Break above 146.60/147.40 essential for confirming extension in rebound
USD/JPY rebounded sharply after making interim lows near 140.20 late last month. It recovered the 200-DMA and reached the October low of 146.60/147.40 which is an interim resistance zone. An early pullback is taking shape.
It would be interesting to see if the pair can defend the 200-DMA near 143.40. Failure would mean risk of one more down leg towards 140.20/139.60.
Break above 146.60/147.40 is essential for confirming extension in rebound.
