The USDJPY pair continues to consolidate at depressed levels, as risk-off trading sentiment underpins strength in the Japanese yen currency. Price-action is currently trading around the key 105.50 level, after hitting 105.24 on Friday, following U.S President Donald Trump’s promise to impose trade Tariffs sparked fears of a potential Trade War. Asian stock markets have suffered heavy losses in early Monday trading, putting further downside pressure on the risk-sensitive USDJPY currency pair.
The USDJPY pair retains a strong bearish bias below the 105.50 level, further downside towards the 105.24 and 104.90 levels appears possible.
Should the USDJPY pair move above the 105.50 level today, buyers may try to test towards the 105.90 and 106.18 resistance levels.
