USDJPY: At risk of pullback if 150/152 remains unchallenged – SocGen

USDJPY has recently struggled to overcome the upper end of a channel in daily time frame chart near 150/152. The pair could stage a short-term breather while below this area, economists at Société Générale report.

142 and 140.30/139.40 are important support levels near term

“Interestingly, monthly MACD histogram has registered multi-year highs and the same indicator in daily time frame has been posting negative divergence. These developments denote the move is stretched and a short-term breather is expected.”

“Projections near 142 and the lower band of the daily channel at 140.30/139.40 are important support levels near term. Defending this channel could highlight continuation in uptrend.”  “Once the pair reclaims the peak of 152, one more leg of up move is not ruled out. In this scenario, 153.50 and 1990 levels near 160 could be next potential resistances.”