USD/JPY: Break below 142 could target 140 and 136.50 – Societe Generale

USD/JPY has slipped below its multi-month trend line and is inching toward a critical support zone near 142.10/141.50, with momentum indicators showing no clear conviction. A decisive break could open the way to deeper losses toward 140 and even 136.50, Societe Generale's FX analysts report.

Lackluster momentum signals caution for Yen bulls

"USD/JPY has breached the trend line drawn since April and is drifting gradually towards recent pivot low of 142.10/141.50. This is a crucial support zone. Daily MACD has experienced crisscross moves around the equilibrium line highlighting a lack of clear direction."

"If a break below 142.10/141.50 materializes, there could be a risk of an extended decline towards December 2023 low of 140 and projections near 136.50. Recent pivot high of 148/148.65 is a short-term hurdle."