Japanese Yen: Breakout to set direction against US Dollar - Societe Generale

Societe Generale strategists Morning Briefing highlight USD/JPY’s sharp rebound from a September low near 152.90, with the pair now capped by key moving averages. They note a sideways pattern between 156.35 and 159, with a break of this range set to confirm direction. FOMC minutes and Bank of Japan (BoJ) commentary keep focus on yields and rate expectations.

Range trade near key resistance

"USD/JPY staged a sharp rebound after forming an interim low near 152.90 in September."

"The pair is now challenging the confluence of its 50-DMA and 200-DMA."

"Short-term price action has turned sideways within the limits of 156.35 and 159; a break beyond one of these boundaries will be crucial for confirming the next directional move."

"If USD/JPY crosses 159, the rebound could extend towards the graphical levels of 160.40/160.70, representing the peaks of March and April."