USD/JPY’s downward momentum has got arrested after forming a trough near 129.50. The 200-Day Moving Average (DMA) near 136.50 could provide resistance, economists at Société Générale report. 

Short-term rebound not ruled out

“Holding above 129.50, a short-term up move is not ruled out towards the 200DMA at 136.50; this could cap the upside.” 

“December high of 138/138.80 could be an important resistance zone.  Failure to reclaim 138.50/139.00 would mean risk of continuation in downtrend.”

“Below 129.50, next potential supports are located at projections of 128 and peak of 2015 near 125.85/124.00.”