FXStreet (Delhi) – Research Team at Societe Generale, notes that the USD/JPY is witnessing a rebound after testing the neckline of a Head & Shoulders formation at 116. Key Quotes “Last month the pair formed a hammer suggesting 116 as a key level that will decide if a deeper correction takes shape. It is noteworthy that broad consolidation zone still persists in USD/JPY. Back in 2013-2014, the consolidation took shape within a mildly upward channel while here it appears to be within a flat range roughly between 126 and 116. Currently the pair is probing a weekly ascending channel limit. A test of 122, a daily trend resistance and the 76.4% retracement since November is not ruled out. However, with weekly and daily indicators close to resistance levels, the recovery still appears to be of corrective nature. Multi month descending channel at 123/123.70 will remain an important hurdle.” For more information, read our latest forex news.