USD/JPY: robust despite weak dollar in Tokyo

USD/JPY is making a relatively robust start in Asia where otherwise, the dollar has come under pressure due to the markets re-thinking on a 2016 hike from the Fed and stocks are under pressure.

USD/JPY sold off sharply last week due to the shocking nonfarm payrolls result that markets will be tuning into Yellen's comments on the matter later today in the US shift.

The Yen has made a high vs the dollar of 106.36 so far and is in a minor recovery currently from those lows. 

"While the JPY106.25 area may offer the dollar some initial support, there is little stopping a return to the May 3 low of JPY105.55," explained analysts at BBH. "A break of it would fan expectations of a move toward JPY100 (with JPY100.60 representing a 50% retracement of the Abe-Kuroda rally)."

Yen bulls can buy JGB's, BoJ to ease further on string Yen? - BBH

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the USD/JPY pair daily chart shows that the strong bearish momentum persisted at the weekly close, as the technical indicators maintain their sharp bearish slopes well below their mid-lines. "In the same chart, is notable that the price faltered around a sharply bearish 100 DMA earlier in the week, which ultimately adds to the bearish case in the longer term."