USD/JPY continues its rebound, breaking a multi-month descending trend line and approaching the January high near 158.85–159.10. While resistance in this zone may prompt a short-term pullback, the recent low at 154.40 offers key support, Société Générale's FX analysts note.

JPY extends rebound above multi-month trend line

"USD/JPY crossed a multi-month descending trend line last month resulting in extension of rebound. The move is now accelerating as highlighted by a steeper up sloping trend line."

"The pair is gradually inching towards January high of 158.85/159.10. If it encounters resistance around this zone, a brief pullback cannot be ruled out however the low achieved earlier this week at 154.40 could be a short-term support."