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    Société Générale analysts say USD/JPY faces resistance around 159.45 with potential pullback support.

    by VT Markets
    /
    Jan 23, 2026
    The USD/JPY has hit resistance at the top of an ascending channel around 159.45. A short pullback may find support at the 50-day moving average, which is between 156.00 and 156.60. If the price stays above this moving average, the upward trend could continue. A move beyond 159.45 might target levels around 160.70 and even a potential peak near 162 in 2024.

    Société Générale’s FX Analysts Insights

    This information comes from Société Générale’s FX analysts and is included in reports curated by the FXStreet Insights Team, which gathers views from various experts. USD/JPY has faced resistance at approximately 159.45, pausing its rise. A pullback seems likely, and we should closely watch the 50-day moving average around 156.00-156.60. The pair’s behavior at this level will likely influence its direction over the next few weeks. This technical situation comes as the dollar strengthens fundamentally, especially after the US CPI data for December 2025 came in unexpectedly high at 3.2%, exceeding market expectations. Meanwhile, the Bank of Japan maintained its current policy in its recent meeting, causing disappointment for those who expected a more proactive approach to support the yen. This growing difference in policies is the main driver in this market.

    Strategy for Derivatives Traders

    For derivatives traders, if the support area of 156.00-156.60 holds, buying call options could be a smart move to take advantage of the next upward shift. Implied volatility is lower than during the 2024 intervention periods, making option premiums more affordable for a defined-risk trade. A bounce from this moving average would indicate that the upward trend is still strong. If the pair breaks decisively above the 159.45 resistance, we will set our sights on higher targets at 160.70 and even the 2024 peak near 162, which remained untouched throughout all of 2025. A breakout strategy might involve call spreads to aim for these higher levels while keeping costs in check. The market is clearly testing the resolve of Japanese officials, who have been notably quiet on intervention so far this year. Create your live VT Markets account and start trading now.

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