The USD/JPY pair retreated from a strong resistance level near 157.90 but remains supported above the 50-day moving average, with near-term price action likely to remain range-bound unless a clear break above 156.95 sparks renewed bullish momentum, foreign exchange market analysts at Société Générale note.
Range trading dominates the near-term outlook
“USD/JPY faced strong resistance near 157.90 in November and has since retreated. The pair continues to hold above the 50-DMA (around 154.30), reinforcing the underlying bullish momentum.”
“In the short term, the price action is likely to remain range bound defined by the recent pivot low near 154.30 and the high achieved earlier in December at 156.95. A break above the upper bound near 156.95 could extend the upward move.”
