USD/JPY could see further losses below 111/110 – Societe Generale

Societe Generale cross asset technical research note points to more losses in USD/JPY below 111/110 levels with upside in the next three months likely to be capped around 116.00.

Key points

USD/JPY completed major up cycle last year at 126 where it hit multi decadal trend. It has confirmed a broad H&S with potential at 106. Monthly indicator has also given negative crossover suggesting deeper downtrend.

Short term, it is probing an intermittent support of 111/110. However neckline at 116 should cap upside.