Key Moments
- USD/JPY has been trading above its 50-day moving average, preserving its positive momentum.
- The pair has consolidated in a base pattern since November while testing the upper end of its recent range.
- Key upside reference levels highlighted include 158.90/159.10 and projections around 160.70, with support near 156 at the 50-DMA.
Technical Setup and Range Behavior
According to Société Générale’s FX analysts, USD/JPY continues to trade in a consolidation phase while staying above its 50-day moving average. This price action has maintained an overall upward bias as the pair works to break through the upper boundary of the trading range that has been in place since November.
The analysts note that the structure since November has formed a base, with the spot rate repeatedly holding above the 50-day moving average. This dynamic is described as confirming the resilience of bullish momentum in the pair.
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— Sanchi Khurana (@KhuranaSanchi) January 12, 2026
Critical Support and Upside Targets
A key technical focus for Société Générale is the support area around 156, which aligns with the 50-day moving average. The analysts emphasize the importance of this zone in sustaining the broader uptrend.
They state: “USD/JPY has been consolidating within a base since November while successfully holding above the 50-DMA, underscoring the persistence of upward momentum. The pair is now attempting a breakout above the upper boundary of its recent range.”
On the upside, the analysts outline specific targets if this support continues to hold and the breakout attempt succeeds. They comment: “Defense of the moving average near 156 could lead to extension in uptrend. The next objectives could be located at last year’s peak of 158.90/159.10 and projections near 160.70.”
Key Technical Levels
| Level | Role | Comment |
|---|---|---|
| 50-DMA near 156 | Support | Holding above this area is seen as crucial for maintaining upward momentum. |
| Upper boundary of recent range | Resistance | USD/JPY is attempting to break above this range high formed since November. |
| 158.90/159.10 | Upside objective | Marked as last year’s peak and cited as the next technical target. |
| 160.70 | Projected resistance | Identified as a further upside projection if the uptrend extends. |
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