USD/JPY fails at key resistance – Société Générale

USD/JPY struggles to sustain upward momentum, with a failure at key resistance and risks building for a deeper pullback toward 140 and below, Société Générale's FX analysts note.

Downtrend may extend

"USD/JPY up move has so far remained short of the hurdle of 146.50 representing March low and the 50-DMA. It has breached the channel that encompassed recent bounce denoting a lack of steady upward momentum."

"Recent pivot low of 142 is next important support. In case the pair fails to defend it, the phase of downtrend may extend. Next objectives could be located at 140/139.50 and projection of 136.50."

May 7, 2025

USD/JPY: Likely to consolidate in a 142.20/144.00 range – UOB Group

US Dollar (USD) is likely to consolidate in a 142.20/144.00 range. In the longer run, USD has likely entered a consolidation phase and is likely to trade between 142.20 and 146.70 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.

USD/CNH is likely to trade in a 7.1900/7.2300 range – UOB Group

Outlook is mixed; US Dollar (USD) is likely to trade in a 7.1900/7.2300 range against Chinese Yuan (CNH). In the longer run, USD could range-trade for a few days before resuming its decline; the level to watch is at 7.1700, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.