USD/JPY: SocGen sees a powerful bearish signal following break of 116

In the short term, SocGen noted that the USD/JPY made a break below the critical 116/115.50 price level. A move that confirms a head and shoulders pattern which should help confirm current losses.

"The objective that this configuration suggests is 106, the 38.2% Fibonacci retracement of the 2012-2015 movement.

Immediate support is at 113.80/113.20, the 23.6% Fibo retracement of the bearish channel in which the pair has evolved over the past few months." says the SocGen bank.