USD/JPY: Range breakout risk grows – Societe Generale

💡 DMK Insight

USD/JPY is at a critical juncture, and here’s why you should care: With the pair pressing against resistance at 159.90, traders need to watch for a potential breakout or reversal. This level has held firm for a while, and a decisive move above could signal a bullish trend, possibly targeting the next psychological level around 162. On the flip side, if it fails to break through, we could see a pullback towards the 50-day moving average at 156.50. This is a key support level that has historically provided a cushion for price action. Given the current market volatility, especially with economic indicators fluctuating, traders should be prepared for swift moves. Keep an eye on broader market sentiment and any news that could impact the USD or JPY, as these could trigger significant price shifts. For now, monitor the price action closely around these levels, as they could dictate your next trading strategy—whether you’re looking to go long on a breakout or short on a rejection.