USD/JPY could tank to 136/135.50 in case July peak of 139.40 fails – SocGen

USD/JPY achieved the upper limit of a multi month channel at 146 after which a sharp reaction has taken shape. The pair could fall as low as 136/135.50 on failure to hold above July peak 0f 139.40, analysts at Société Générale report.

Initial resistance aligns at 143.80

“Break below the lower band of recent range highlights possibility of a short-term pullback.”

“Next support is located at July peak of 139.40. In case the pair fails to defend it, the down move is likely to extend towards 138.10 and even towards the lower limit of the channel at 136/135.50.”

“First resistance is at 143.80.”