USD/JPY (current price: 107.97)
The Japanese Yen resumed its bullish trend after getting close to the 110 level as we expected, as Friday ended with a bullish reversal for the currency. The number one risk-off asset is close to hitting new highs against most of the G10 currencies, with USD/JPY being just about 50 pips above its recent lows around 107.5. The 105 level could serve as the next target if the current support zone fails to hold in the pair this week.
Our assessment: USD/JPY is trading near 108 again after a strong rebound on Friday and a huge slump today in early trading. The pair could hit new lows as early as today afternoon if the negative sentiment proves persistent.
