USDJPY FURTHER BEARISH UNDER YEARLY LOW

The U.S dollar has continued to move lower against the Japanese yen during the European trading session, with price-action edging ever closer to the 2018 price-low, at 105.50. The USDJPY pair currently sits around the 106.60 region, as traders buy the Japanese yen currency following bullish comments from BOJ Governor Kuroda, who noted the BOJ may exit monetary stimulus next year. Moving into the U.S session, traders are likely to focus on the key 105.50 technical level and the current heavy decline underway in global stock markets.

• The USDJPY pair is likely to experience heavy selling below the 105.50 level, further losses towards 105.00 and 104.60 appear possible.

• If the USDJPY pair moves back above the 106.18 resistance level, traders may push price-action towards the 106.60 and 107.01 levels.