USD/JPY: Failure to reclaim 143.20 can lead to one more down leg – SocGen

Economists at Société Générale analyze USD/JPY technical outlook. 

Below 137, next potential objectives could be at 135 and 133.80

USD/JPY faced stiff resistance near 145/146.10 resulting in sharp wave of pullback. It dipped towards the graphical zone of 138/137 representing the upper end of previous consolidation zone and the 200-DMA. The slope of the MA is flattish which denotes steady upward momentum is still lacking. This is also highlighted by daily MACD which has dipped within negative territory.  

Currently, a bounce is underway however failure to reclaim 143.20, the 76.4% retracement of recent down move can lead to one more down leg. 

Below 137, next potential objectives could be at the trend line since January at 135 and 133.80.