The USD/JPY pair continues its recovery, breaking the multi-month downtrend line and approaching the January high near 158.85-159.10. While resistance in this area could lead to a pullback in the short term, the recent low at 154.40 provides key support, foreign exchange market analysts at Société Générale note.
The Japanese Yen has been bouncing above the trend line for several months
“USD/JPY crossed a multi-month downtrend line last month extending the rebound. The move is now accelerating as evidenced by the steeper uptrend line.”
“The pair is gradually heading towards the January high at 158.85/159.10. If it faces resistance around this area, a short-term pullback cannot be ruled out, however the low achieved earlier this week at 154.40 could be short-term support.”
