USDJPY SENTIMENT REMAINS WEAK BELOW 110.55
The US dollar remains under pressure against the Japanese yen on Monday, as the yen currency benefits from the risk-off trading sentiment in financial markets. The USDJPY pair has found interim support from just the 110.00 level so far, with price managing a minor corrective move back towards the 110.30 region. Sellers still retain control of the USDJPY pair while price trades below the 110.55 level, which represents the neckline of a bearish head and shoulders pattern.
The USDJPY pair is strongly bearish while trading below the 110.55 level, key support is located at the 109.56 and 109.28 levels.
If the USDJPY pair trades above the 110.55 level, we may see a further corrective move back towards the 110.80 and 111.10 resistance levels.