USD/JPY to see further gains towards 2020 highs at 112.23/112.40 – SocGen

USD/JPY trades within touching distance of the July high at 111.66. Economists at Société Générale expects the pair to extend its uptrend towards the 112.23/112.40 region.

Test of 111.70 looks on the cards 

“Defending 110.45, it could attempt a rebound towards 111.70 and 2020 high of 112.23/112.40.”

“The main downside risk to USD/JPY is another run of negative news from China (PMIs, Evergrande) and contagion to global risk assets.”