USD/JPY has formed a tentative low near 127.20. A break above 131.20 is essential to affirm short-term bounce, economists at Société Générale report.
Signals of a trend reversal are not yet visible
“A pause is underway, however, signals of a trend reversal are not yet visible.”
“Last week high of 131.20 is short-term resistance. Failure to overcome this would mean continuation in the phase of decline.”
“If the pair breaches recent trough at 127.20, the downtrend could extend towards 2015 levels of 125.85 and 124.00.”
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