Target 104/104.45 If 100 Holds, Target 95/94.80 If 100 Breaks - SocGen
From the technical analysis team at Societe General:
In June, USD/JPY tested a multi-year descending trend and graphical levels at 100, which is also the 50% retracement of the 2011-2015 up move. Last month, it formed a hammer, stressing 100 as an important level.
The monthly indicators are also near support and suggest that only a weekly close below 100 will mean a deeper correction towards the next significant support at the 2010 highs of 95/94.80.
The pair is now undergoing a choppy consolidation and may revisit the support of 100. As long as 100 holds, a rebound towards the highs of earlier this month at 104/104.45 looks likely. A break above will lead to a sustainable recovery.
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