Economists at Société Générale analyze USD/JPY technical outlook.

Converging towards 142.50/142.80

After a brief pause, USD/JPY has resumed its phase of rebound. The pair is now challenging a multi-month channel band; an initial pullback is not ruled out however 200-DMA near 138/137.20 is expected to provide support. Defending this can lead to continuation in up move.

Next potential hurdles are at 142.50/142.80, the 61.8% retracement from last year and 144.40.

See: USD/JPY to break above 142.25/50 toward next resistance at resistance at 145.00/12 – Credit Suisse