USDJPY could dive as low as 132.50 on failure to defend 140.30/139.40 – SocGen

USDJPY thunders lower by 3.5% in two days. The pair could extend its decline towards 137.80 and even 132.50 on failure to hold 140.30/139.40, economists at Société Générale report.

Failure to cross 145.00 could mean continuation in downside  

“USDJPY has dipped towards the lower limit of the channel drawn since March at 140.30/139.40 which is also the peak of July. This is first layer of support.”

“Failure to cross 145.00 could mean continuation in downside.”

“In case the pair struggles to defend 140.30/139.40, the down move could extend towards 137.80 and 132.50, the 38.2% retracement from 2020.”