- USD/JPY remains depressed for the third consecutive session on Monday.
- Now seems vulnerable to extend the slide amid persistent trade uncertainty.
The USD/JPY pair extended last week’s pullback from six-month tops and remained depressed for the third consecutive session on Monday, also marking its sixth day of a negative move in the previous session.
Currently hovering around mid-108.00s, the pair now seems to have found acceptance below an important confluence region comprising of 50-day SMA and over one-month-old ascending trend-line support.
Some follow-through selling below the 108.40-30 region will confirm a near-term bearish breakdown and set the stage for a further depreciating move towards testing sub-107.00 level (early November swing lows).
Bearish technical indicators on hourly/daily charts further reinforce the near-term bearish outlook amid persistent uncertainty surrounding a potential phase one deal between the world’s two largest economies.
On the flip side, bulls are likely to wait for a sustained strength beyond the 109.00 handle before positioning for any meaningful positive move back towards the recent swing high – around the 109.70-75 region.
USD/JPY daily chart
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