USD/JPY: A move closer to 150 is not ruled out after the FOMC decision – SocGen

USD/JPY locked in a tight range as traders await fresh catalysts in the form of the Fed and the BoJ next week, economists at Société Générale report.

A break above 147.80/148.10 is essential to affirm continuation in up move

The BoJ meets next week, expectations for a change in policy are low but a move closer to 150 in USD/JPY is not ruled out after the FOMC decision.

A break above upper part of recent consolidation at 147.80/148.10 which is also the trend line connecting highs of June and August is essential to affirm continuation in up move. 

In case the pair fails to defend recent pivot low at 145.90, there could be risk of a short-term pullback towards the 50-DMA near 144.50/143.90.