USD/JPY has slid back below the 103.50 and to Monday Asia Pacific session levels as USD strength ebbs away. Safe-haven JPY has been one of the better G10 FX performers on Monday amid risk-off flows. USD/JPY continues to fall back from earlier highs above the 103.80 mark as strength in the US dollar ebbs away. The pair currently trades just to the south of 103.50, with gains on the day now just 0.1% or roughly 10 pips. Indeed, USD has seen a majority of its gains eroded vs most of its major G10 counterparts since the midpoint of the European morning, with the Dollar Index (DXY) having slipped from highs above 91.00 to current levels in the 90.20s. JPY benefits from safe-haven properties Aside from USD, which is still Monday’s best-performing currency within G10 FX, JPY has held up very well. Monday has seen a distinct risk of bias to global market trade amid concerns regarding the news coming out of the UK regarding a recently discovered, more virulent strain of Covid-19 that is spreading rapidly in the country and prompting London and much of the South East to be plunged back into full-scale lockdown. Though much of the downside in global US equities at least has now pared, in part as a result of the fact that a number of bank stocks have soured on after passing Fed Stress Tests that will allow them to recommence stock buybacks, JPY continues to hold up well as USD ebbs from earlier highs. Japanese PM draw USD/JPY line in the sand Japanese PM Yoshihide Suga has reportedly told the Japanese Finance Minister not to let USD/JPY depreciate below 100, reported Nikkei during Monday’s Asia Pacific session. The report added that his comment came with an “unspoken message” that the Finance Minister should be prepared to sell JPYs for USDs if the pair breaches this threshold. Apparently, his comments have been confirmed by multiple sources. Clearly then, the Japanese PM is concerned about the effect that further depreciation of USD/JPY might have on Japan’s trade balance with the US. Moreover, this might be the Japanese PM’s way of inadvertently demonstrating that he has does not have confidence in the BoJ’s ability to further weaken JPY. The comments did not have any immediate effect on USD/JPY, but beware that if/when the pair does start getting close to this level, further jawboning from the Japanese Finance Ministry will become more likely, as would overt market manipulation ala the SNB. USD/JPY gains still capped by 21DMA USD/JPY is still seeing significant selling pressure ahead of its 21-day moving average (DMA). On Monday, the pair rallied as high as the 103.89 level, only just over 10 pips away from the pair’s 21DMA at just above 104.00. The pair has struggled to sustain gains above its 21DMA since mid-November and has consistently been unable to recover back towards its 50DMA, which currently sits at 104.41. Meanwhile, the last time the pair was above its 200DMA, which currently sits at 106.31, was all the way back in June. USD/JPY four hour chart FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US: Vaccination process is encouraging but we still expect weak data – TDS FX Street 2 years USD/JPY has slid back below the 103.50 and to Monday Asia Pacific session levels as USD strength ebbs away. Safe-haven JPY has been one of the better G10 FX performers on Monday amid risk-off flows. USD/JPY continues to fall back from earlier highs above the 103.80 mark as strength in the US dollar ebbs away. The pair currently trades just to the south of 103.50, with gains on the day now just 0.1% or roughly 10 pips. Indeed, USD has seen a majority of its gains eroded vs most of its major G10 counterparts since the midpoint of the European… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk.3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk.4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk.5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.