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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."

ECB's Rehn: Should be mindful of the risk that inflation stays persistently below 2% target

European Central Bank (ECB) policymaker Olli Rehn said on Wednesday, “ECB should be mindful of the risk that inflation stays persistently below 2% target.”
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AUD/USD: May still test 0.6595 – UOB Group

Australian Dollar (AUD) may still test 0.6595 against US Dollar (USD), but a sustained rise above this level is unlikely. In the longer run, should AUD break clearly above 0.6595, it could trigger a further rise toward 0.6620, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
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