Societe Generale’s Kenneth Broux highlights that USD/JPY has broken out of a brief consolidation and is now challenging its 2024 peak near 162.00. The bank notes strong May retail sales support expectations for further Bank of Japan tightening. Key technical levels are identified at 159.65, 160.40 and 162.40, with upside projections toward 163.70 and 164.40.

Uptrend eyes fresh upside projections

"USD/JPY broke out of a brief consolidation earlier this month, extending its upward move. "

"The pair is now challenging the 2024 peak at 162/162.40, which has so far acted as an interim hurdle. However, signals of a large pullback are not yet visible."

"Defence of the recent pivot low at 159.65 could lead to a continuation of the uptrend."

"A break beyond 162/162.40 may open the door to further gains toward the next projections at 163.70 and 164.40."

"Spot sidles below 162-handle, surprisingly strong May retail sales (1.9% m/m vs consensus -0.5%) adds case for further BoJ tightening. Support 160.40, resistance 162.40."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)