EUR/JPY poised for recovery – Societe Generale

Societe Generale Cross Asset Strategy team sees a potential for recovery in the EUR/JPY pair.

Key points

EUR/JPY formed a significant bottom last year, testing the lower bound of a multi-year descending channel (109.50). It has crossed above the channel, which suggests the possibility of further upside.  Currently, it is retesting the channel limit at 119.70/119.30 and a recovery looks on cards. 118.50 will be an important support.

The cross is seen rising to 122.50 in three months.