- Societe Generale SA (based on Bloomberg)
The upward impetus of the US Dollar turned out to be stronger than expected. USD/JPY managed to settle above the resistance at 120 represented by the weekly and monthly R1 levels, suggesting we should soon see a test of the late December highs at 121. The main nearby obstacle for the bullish outlook is the 2014 high at 122, which needs to be overcome for the rate to set course for the 2007 high at 124 in the longer term.
The bulls have lost some of their advantage over the bears during the last five days. Their share has diminished from 62 to 58%. Meanwhile, 76% of pending orders are placed to purchase the Buck against the Yen.