USD/JPY to extend the bounce toward 137.00/70 on a cross above 135.50 – SocGen

USD/JPY has surpassed the 135 level. Economists at Société Générale analyze the pair's technical picture.

130/129.80 should be a crucial support

“Sellers stay sidelined after neutral comments by Ueda on policy and inflation.”

“Projection at 135.50 is next resistance. An initial pullback is not ruled out, however, recent pivot low at 130/129.80 should be a crucial support.”

“Cross above 135.50 can lead to an extended bounce toward the 200-DMA at 137.00/137.70.”

See: USD/JPY could hit the 136/137 area over the next couple of weeks – ING