USDJPY undergoing a choppy consolidation - SocGen

Research Team at Societe Generale, notes that in June, USD/JPY tested a multi-year descending trend and graphical levels at 100, which is also the 50% retracement of the 2011-2015 up move.

Key Quotes

“Last month, it formed a hammer, stressing 100 as an important level. The monthly indicators are also near support and suggest that only a weekly close below 100 will mean a deeper correction towards the next significant support at the 2010 highs of 95/94.80. The pair is now undergoing a choppy consolidation and is revisiting the support of 100. As long as this holds, a rebound towards the highs of earlier this month at 104/104.45 looks likely. A break above will lead to a sustainable recovery.”