USD/JPY: Next significant hurdle stands at 116 - SocGen

Research Team at Societe Generale, explains that the USD/JPY has achieved an intermittent projection for the up move at 113.65/114 and formed a doji candlestick which is giving way to an initial pullback.

Key Quotes

“Next significant hurdle stands at 116 which happens to be the potential of the double bottom confirmed earlier. On hourly chart though, the pair hit a steeper ascending channel upper bound and has breached below the channel pointing towards a short term pause. The pair is testing first support at 111.20/110.90, the 23.6% retracement of recent up move. A break below will mean possibility of retesting daily channel limit at 109 which will remain an important support near term.”