USD/JPY fails at key resistance – Société Générale

USD/JPY struggles to sustain upward momentum, with a failure at key resistance and risks building for a deeper pullback toward 140 and below, Société Générale's FX analysts note.

Downtrend may extend

"USD/JPY up move has so far remained short of the hurdle of 146.50 representing March low and the 50-DMA. It has breached the channel that encompassed recent bounce denoting a lack of steady upward momentum."

"Recent pivot low of 142 is next important support. In case the pair fails to defend it, the phase of downtrend may extend. Next objectives could be located at 140/139.50 and projection of 136.50."