Societe Generale strategists see potential for renewed Dollar buying as USD/JPY consolidates above March highs near 160.40.
USD/JPY retreated after testing resistance at 162.80 but remains above the March peak of 160.40, signaling potential consolidation. Strategists note renewed USD buying, particularly in USD/Asia, following post-Nonfarm Payrolls reversals.
The pair’s technicals no longer indicate an overbought Dollar, which may attract tactical buyers. A break below 160.40 could signal deeper downside risk, though no clear signals of extended weakness have emerged.
Market focus shifts to whether USD/JPY can sustain support above 160.40, with 165 cited as a key resistance level ahead.