A familiar start to the day for USD/JPY
The yen is keeping higher against the rest of the major currencies bloc amid risk-off pressures in the market but also as the dollar retraces some of its gains from last week to kick start the day, notably against the yen, franc, euro and pound.
US futures hit limit-down earlier and Asian equities are continuing to be battered, keeping the yen underpinned but as has been the case over the past two weeks, will the currency be able to keep up with the dollar as funding pressures persist?
That will be the key question in trading this week as well I reckon.
So far, the greenback is easing a little to start the day but as we saw on Friday, things can quickly turn around for the dollar with USD/JPY closing above 110.00 that day.
For now, sellers are seizing back some form of near-term control at least with the Friday low @ 109.34 and the 100-hour moving average @ 109.02 set to offer key support levels to contend with in the sessions ahead.
Break below the latter and sellers will start to gain more conviction in searching for a further downside break during the course of the week.
