FXStreet (Delhi) – Research Team at Societe Generale, suggests that recovery since October seems to be waning as USD/JPY tested 123.70/124.40, the 76.4% retracement from June highs, also a descending trend level. Key Quotes “The pair is forming a probable double top and is testing the confirmation level near 122. 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.” “After facing stiff resistance at multiyear trend (126), USD/JPY pulled back and achieved graphical support at 118.20. Since then a recovery has been in force however with monthly stochastic indicator giving a negative crossover, upside appears to be capped. Trend resistance since 1990 at 126 remains a key level.” For more information, read our latest forex news.