USDJPY: Break of 137.80 can deepen the decline – SocGen

USDJPY has experienced a deeper pullback after breaking below graphical levels of 145.00. Break of 137.80 can extend the downtrend, economists at Société Générale report.

Bounce likely but resistance at 143.50

“An initial rebound is not ruled out however 143.50 and the lower limit of previous range at 145 are likely to be short-term resistance levels.”

“Holding below 143.50, there would be a risk of one more leg of decline.”

“Violation of 137.80 can result in extension in down move towards 200-DMA near 134 and 132.50.”