EUR/JPY: Holding support zone at 152.20/151.60 could trigger a rebound – SocGen

Economists at Société Générale analyze EUR/JPY technical outlook.

Short-term hurdles are located 155.70 and 156.90

EUR/JPY has experienced first wave of pullback after facing stiff resistance near 158 representing the trend line connecting March/May highs. The pair is now approaching interim support of 152.20/151.60 which corresponds to the 50-DMA. Daily MACD has dipped below its trigger however it is still in positive territory. 

A rebound can’t be ruled out if the pair successfully holds support zone at 152.20/151.60. 

Short-term hurdles are located 155.70, the 50% retracement of recent pullback and 156.90.