USD/JPY hit an eight-month low at 127.24. Next objectives are at projections of 126.80 and 2015 levels of 125.85/124.00, economists at Société Générale report.

2015 high of 125.85/124 is significant support

“The pair is expected to head lower towards projections of 126.80 and the peak of 2015 near 125.85/124.00. This could be an important support zone.”

“Daily MACD has flattened recently however signals of a meaningful bounce are not yet visible.” 

“The 200DMA at 136.50 should cap upside.”

See: USD/JPY can trade down to 126.50 before BoJ’s meeting – ING