Economists at Société Générale analyze USD/JPY’s technical outlook. The 137.70/138.10 area could be an interim hurdle.

Resistance at 137.70/138.10, key support at 134.00

“December peak of 137.70/138.10 is an interim resistance zone; this must be overcome to affirm a larger rebound. An initial pullback is not ruled out however recent pivot low at 134.00 is likely to be an important support.”

“In case the pair establishes itself above the hurdle at 137.70/138.10, the up move could extend towards 139.50, the 50% retracement from last October and 142.30/142.60.”