USD/JPY: Critical support aligns at July's high of 139.40 – SocGen

The USD/JPY uptrend has paused after approaching 146. The pair could suffer a deeper fall on a break under key support 0f 139.40, analysts at Société Générale report.

Above 146, next resistance seen at 148

“Negatively diverging daily MACD points towards receding upward momentum.”

“July's high of 139.40 is a crucial support. In case the pair fails to defend, there could be a risk of a short-term downtrend.”

“Beyond 146, next potential hurdles are located at projections of 148/150.”