USD/JPY is approaching potential resistance at 145/146.10. Economists at Société Générale analyze the pair’s technical outlook.

139/138, a key support zone

The pair is gradually inching higher towards the graphical resistance zone of 145/146.10, representing the peak of last September and the 76.4% retracement of the pullback during last October and January. This is an interim hurdle that could result in a phase of correction. The upper part of the previous consolidation phase near 139/138 would be a key support zone. 

If the pair breaks above 145/146.10, the rebound could extend towards 149 and the previous high of 152.