USD/JPY tests key support near 139.50 – Société Générale

USD/JPY continues to slide after breaking below a flag-like channel, hitting last year’s low around 139.50/138.90. With no clear signs of a rebound, the pair remains vulnerable to further losses toward key projections at 136.50 and 134.80 unless support holds, Société Générale's FX analysts note, Société Générale's FX analysts note.

No signs of rebound as downtrend accelerates

"USD/JPY has extended its phase of decline after breaking below a short-term ascending channel resembling a flag. It has reached last year low of 139.50/138.90. Signals of a meaningful rebound are not yet visible."

"Last week high of 144.30 is near term resistance. Inability to defend 139.50 can result in persistence of decline. Next objectives could be located at projection of 136.50, which is also the lower limit of the channel drawn since last year (log scale) and 134.80."