USD/JPY: Break below 109.35 to add bearish pressure

USD/JPY holds on to higher ground, trading in the 109.60 price zone, as the pair is mildly pressured amid a cautious mood, Valeria Bednarik, Chief Analyst at FXStreet, reports.

Key quotes

“Investors are cautious at the start of the week amid news that a hedge fund that had significant positions in different firms was forced to liquidate late on Friday. Credit Suisse and Nomura reported significant losses as a result of the $20 billion block-sale.”

“The Bank of Japan published the Summary of Opinions, and Governor Haruhiko Kuroda spoke afterwards, repeating well-known concepts. Kuroda said that the central bank will continue with its ultra-loose monetary policy, adding that it will take time to hit the 2% inflation target.”

“USD/JPY is technically bullish in the near-term, with the downward potential still limited. The pair bottomed for the day at 109.35, the level to break to see it falling further.”