USD/JPY has retreated from strong resistance near 157.90 but remains supported above the 50-day moving average, with near-term price action likely to stay rangebound unless a clear break above 156.95 triggers renewed upside momentum, Société Générale's FX analysts note.

Range trade dominates near-term outlook

"USD/JPY encountered strong resistance near 157.90 in November and has since pulled back. The pair continues to hold above the 50-DMA (around 154.30), reinforcing the underlying upward momentum."

"In the short term, price action is likely to remain contained within a range defined by the recent pivot low near 154.30 and the high achieved earlier in December at 156.95. A break above the upper boundary near 156.95 may lead to extension in up move."