USD/JPY to lurch higher towards 117.10/117.40 on a break above 116.35 – SocGen

USD/JPY has climbed above 116 for the first time since early January. Economists at Société Générale expect the pair to grind higher towards 117.10/117.40 on a break above 116.35.

Initial support located at 115.50

“Daily MACD has crossed above its trigger and is within positive territory which denotes upward momentum is still prevalent.”

“The pair is now once again probing the recent peak at 116.35. Signals of deeper downtrend are not yet visible. Beyond 116.35, the uptrend looks poised to extend towards next projections of 117.10/117.40 which is also the upper band of the channel since December.”

“Peak of November at 115.50 is first support.”