USD/JPY has broken out of its September consolidation range, successfully reclaiming the 200-day moving average. While the pair traded above 160 for a second consecutive day, gains were tempered by Finance Minister Katayama's warning against rapid currency moves.
Bullish
🤖 60%
Societe Generale notes USD/JPY has broken out of its September consolidation, reclaimed the 200-day moving average and held above 160 for a second day, pointing to possible extension toward 160.40/160.70 and 162.20. However, Finance Minister Katayama's warning against one-sided, rapid moves prompted some traders to pare back longs, which caps the bullish case.
Catalysts
- ▲ Breakout above the upper limit of the recent consolidation range
- ▲ Spot trading through 160 for a second day (overnight range 159.66-160.19)
Risk Factors
- ▼ Warning by Finance Minister Katayama against one-sided action and rapid forex moves triggered traders to pare back positions
- ▼ Key resistance at 160.40/160.70 (April high) and 162.20 could stall the move