USD/JPY (current price: 108.23)
The Japanese Yen looks to be headed for the 105 level against the USD after the pair fell below 108 on Friday. USD/JPY has been in the centre of attention last week following the break of the widely watched 110 support. It will be interesting to see how the pair will trade later on this week, with only a few major economic releases influencing investor sentiment. The technical factors are still bearish for the Dollar, but a re-test of the 110 level is in the cards, especially if global sentiment improves temporarily.
Our assessment: The pair remains under pressure, despite getting close to oversold levels, as safe haven buying continues to favor the Japanese Yen.
