USDJPY NOW BEARISH BELOW 108.98 LEVEL

The U.S dollar has moved sharply lower against the Japanese yen, as global equities prices plummet lower, following a broad-based shift towards risk-off trading sentiment. The USDJPY pair has fallen to a new monthly-low, hitting 108.45 overnight, after the Nikkei225 index suffered its biggest one-day decline since November 1990. Price-action on the pair has now recovered slightly heading into the European trading session, with buyers and sellers testing overall demand around the pivotal 108.98 level.

• The USDJPY pair still retains a strong bearish bias while trading below the 108.98 level, further losses towards 108.45 and 107.80 seem likely.

• If USDJPY buyers can push the pair above the 108.98 level, we may see a correction back towards the 109.44 and 109.77 levels.