USD/JPY to bounce toward 140.60 on a move above 138 – SocGen

USD/JPY climbed above 137.00 earlier in the day. If the pair overcomes 138.00, a short-term rebound is likely towards 140.60, economists at Société Générale report.

135.00 must be defended to avert continuation in pullback

“Daily MACD is in deep negative territory denoting the down move is a bit stretched. This is not a reversal signal however a brief bounce can’t be ruled out.”

“If the pair overcomes the steep channel band at 138.00, a short-term rebound is likely towards 140.60 with next hurdle at 142.50/142.80, the 50% retracement of the down move.”

“The MA at 135.00 must be defended to avert continuation in pullback.”