USD/JPY (current price: 105.93)
The Japanese Yen traded with a 105 handle, for the first time since 2014, today in early trading as the pair continues to be under pressure following last week’s wild decline. The slight miss in the U.S. and the Chinese Manufacturing PMIs is also a bearish sign for the pair, as safe haven buying favors the Yen against the Dollar. The Dollar Index plunged to a new 15-month low, as the reserve currency declined for eight sessions in a row compared to its most important peers.
Our assessment: The pair remains in a bearish short-term trend with all eyes on the 106 level. As long as USD/JPY remains below 106.75 odds favor a decline to the 105-105.25 zone.
