Japanese Yen: Technical outlook weakens against US Dollar – Societe Generale

FXStreet Insights Team FXStreet

Societe Generale analysts highlight USD/JPY trading in breakout territory above 163 for the first time in nearly four decades, with support around 162.20 and resistance near 164.40. Technical commentary points to an extended uptrend after clearing a consolidation range, while Japanese officials’ warnings of appropriate action have yet to deter Yen bears despite a wider June trade deficit.

Breakout holds above 163

"USD/JPY climbs up to 163.24, FinMin Katayama and Cabinet Secretary Kihara repeat warning of appropriate action as needed."

"Spot in breakout territory above 163 for first time in nearly four decades. Katayama/Kihara jawboning not compelling to repel yen bears."

"USD/JPY recently evolved within a narrowing range but successfully held above the 50-DMA. It has now broken above the upper boundary of this consolidation, indicating the potential for a further extension of the uptrend. "

"The next objectives are located at projections of 163.70/164.40 and 165.40. Signals of an extended pullback are not yet visible. The low established earlier this week around 162.20 could be the first support."

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