Societe Generale analysts report that USD/JPY is currently testing the upper boundary of its multi-year trading range, with resistance levels identified at 159.50 to 159.90 and key support at the 50-day moving average near 156.50 [1]. The pair's recent upward momentum has paused, and analysts emphasize the importance of monitoring whether USD/JPY can break out from this range [1]. According to Societe Generale, a sustained move above 159.90 could trigger further gains, targeting the 2024 high near 162 and projections up to 163.70, thereby maintaining the broader uptrend [1]. The defense of the 50-day moving average at 156.50 is seen as crucial for the continuation of this upward trajectory [1].
The spot USD/JPY is described as mildly bid, with the dollar maintaining an advantage amid Middle East uncertainty. Immediate support is noted at 157.50, while resistance remains at 159.90 [1]. Additionally, minutes from the Bank of Japan highlight ongoing yen weakness, the necessity for timely rate hikes, and rising risks associated with the yield curve [1].
No specific market reactions or analyst opinions regarding future movements beyond the technical outlook and BoJ commentary are provided in the source [1].
CONCLUSION
USD/JPY is at a critical juncture, challenging multi-year resistance levels with potential for a breakout if 159.90 is surpassed. Societe Generale underscores the importance of technical support and resistance, while BoJ minutes point to yen weakness and policy concerns. The market remains attentive to these developments, with medium impact expected if a breakout occurs.