USD/JPY: Lack of clear direction - SocGen

Since March this year, USD/JPY is witnessing a choppy consolidation within a pattern similar to a triangle which denotes lack of clear direction, according to analysts at Societe Generale.

Key Quotes

“Recently it revisited May highs of 114.40/60 and is undergoing a retracement. Very short term, a retest of the upward sloping trend at 110.20/110.15, also the 76.4% retracement from last June can’t be ruled out with next support at the triangle lower bound near 109.30. Daily stochastic is approaching towards a multi month floor however the price action is likely to remain range bound in foreseeable future.”