USD/JPY to extend the decline towards 135.40 and 134.00 on failure to defend 137.68/137.00 – SocGen

USD/JPY pushes lower and trades below 138.00 for the first time in two weeks. A break under 137.68/137.00 would open up projections of 135.40 and the 200-Day Moving Average near 134.00, economists at Société Générale report.

Initial resistance seen at 139.60

“Daily MACD is in deep negative territory denoting an overstretched move however signals of a meaningful up-move are not yet visible.”

“The pair is close to the low formed earlier this month near 137.68/137.00. Failure to defend this can extend the decline towards projections of 135.40 and 200DMA near 134.00.”

“First resistance is at 139.60.”