USD/JPY has slumped to its weakest level in four months below 133.00. Holding above 130.40 is critical to avoid a deeper fall, economists at Société Générale report.

Signals of a meaningful rebound are not yet visible

“Daily MACD is in deep negative territory, however, signals of a meaningful rebound are not yet visible.” 

“A revisit of August trough near 130.40 is not ruled out. Defending this would be essential to avert a revisit of 2015 levels near 125.85/124.00.”

“The MA at 135.60 is near term hurdle.”