USD/JPY: Double Top; AUD/USD: Consolidation Within A Triangle - SocGen
USD/JPY is forming a probable double top and is testing the confirmation level near 122, notes SocGen.
"It's noteworthy that the pair has also breached a steeper daily upward channel within which the recovery from October evolved. A break below 122 will lead to a correction towards 120.20, the projected target for the aforementioned pattern and even towards 118.20, the monthly channel limit.
Multi decadal trend resistance at 126 remains a key level, which decides if another leg of up move occurs," SocGen projects.
Turning to AUD/USD, SocGen notes that it appears to be consolidating within a pattern similar to triangle.
"It has given a break above a descending trend line suggesting possibility of further rebound towards 0.7350, triangle limit.
However, the rebound should be corrective in nature and daily channel limit at 0.7500 , also April lows remains a key resistance and should cap any upside," SocGen adds.
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