USD/JPY has staged a sharp pullback after facing stiff resistance near March 2017 levels of 115.50. On Wednesday, the pair is holding on to modest daily gains around 113.50. Economists at Société Générale believes that USD/JPY needs claim the 115.50 level to see another leg higher.

Failure to defend 112.23/111.65 can result in a deeper pullback

“The 115.50 level remains a crucial hurdle that must be overcome for next leg of uptrend.”

“The pair is in vicinity to daily Ichimoku cloud at 112.23/111.65 which is also the graphical level consisting of 2020 peak. This will be a crucial support zone.”

“Failure to defend 112.23/111.65 can result in a deeper pullback.” 

“First resistance is at 114.10.”