USD/JPY: Bears target 108.00 as risk-off remains at full steam

The USD/JPY pair is heavily on the offers and extends its bearish momentum for the second straight session, now meandering near the weakest level since mid-Nov. The spot was last seen exchanging hands at 108.22, having posted fresh five-month lows of 108.14 some minutes ago.

The spot faces double whammy, in the wake of widespread risk-aversion and broad based US dollar weakness, while subdued trading activity amid extension of the Easter break, exaggerates the moves in the major.

The greenback remains broadly under pressure amid tumbling treasury yields, as last week’s Trump talking down of the US currency continues to weigh on the investors’ minds. Meanwhile, the tense situation between the US and North Korea over the Asian state’s nuclear weapons program continues to keep markets unnerved.

The US President Donald Trump's national security adviser said on Sunday, via Reuters, “the US, its allies and China are working together on a range of responses to North Korea's latest failed ballistic missile test.”

Amid holiday-thinned trading in the day ahead, the spot will continue to get influenced by the broader markets sentiment ahead of the US datasets lined up for release in the NA session.

USD/JPY Technical levels                 

A break above 108.46/66 (daily pivot/ 5-DMA) would expose 109 (zero figure) and 109.37/ 69 (1h 100-SMA/ 10-DMA). On the other hand, a breach of support at 108 (round number) could yield a test of 107.88 (Classic S2/ Fib S3) and 107.52/50 (Classic S3/ psychological levels).