USD/JPY prints fresh lows under 111.00

USD/JPY is hovering around 110.05/10 after reaching a fresh daily low at 110.92. The pair remains under pressure, but so far price action remains limited. 

The greenback is among the weakest currencies on Monday. The US dollar index bottomed at 96.65, the lowest since November. During the American session US bonds recovered ground. Falling US yields favored the against the US dollar. The downside so far was limited amid risk appetite. The Dow Jones is up 0.40% while the Nasdaq gains 0.61%.

Technical outlook 

“The 4 hours chart shows that the price remains stuck around the 50% retracement of its latest bullish run and the 200 SMA, both converging at 111.20. In the same chart, technical indicators diverge from each other, with the Momentum aiming north above 100 and the RSI heading south around 41, failing to provide clear clues on what's next for the pair”, said Valeria Bednarik, Chief Analyst at FXStreet. 

According to Bednarik, support is seen around 110.90, with a break below it opening doors for a steeper decline that can extend down to 110.00, over the upcoming sessions.