USD/JPY consolidates near two-week low. Economists at Société Générale analyze the pair’s technical outlook.

Move beyond 148.10 is essential to confirm next leg of up move

USD/JPY rebound has stalled after approaching projections at 149.10. A brief decline has led the pair back towards 50-DMA at 145.50/145.30 which is a potential support zone.

Daily MACD has dipped below its trigger line, but it is situated in positive territory denoting prevalence of upward momentum.

A short-term bounce is likely; move beyond 148.10, the 76.4% retracement of recent down move is essential to confirm next leg of up move.

In case the pair breaks 145.50/145.30, the decline could extend towards 142.00 and low formed last month near 140.20.