The USD/JPY pair maintained its heavily offered tone through the mid-European session and was last seen trading below mid-105.00s or the lowest level since March 16.
The pair extended last week's bearish break below the 106.65-60 strong horizontal support and witnessed some strong follow-through selling on the first day of a new trading week. The downfall was led by the prevalent bearish pressure surrounding the US dollar and concerns about worsening US-China relations.
Investors remain worried that the resurgence in coronavirus cases in the United States could undermine the US economic recovery. This coupled with speculations that the Fed would add more stimulus to support the economy exerted some heavy pressure on the USD and was seen as a key factor dragging the USD/JPY pair lower.
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