USD/JPY slumps to fresh monthly lows near 103.60 on broad USD weakness
|- USD/JPY is falling for the fourth straight day on Monday.
- US Dollar Index touched fresh multi-year lows below 90.50.
- Wall Street's main indexes look to open sharply higher.
After closing the previous three trading days in the negative territory, the USD/JPY pair extended its slide on Monday and slumped to its lowest level since early November at 103.59. As of writing, the pair was down 0.38% on a daily basis at 103.62.
USD selloff intensifies
The broad-based USD weakness seems to be causing USD/JPY to remain under bearish pressure. On Monday, the US Dollar Index (DXY) slumped to its lowest level since April 2018 at 90.43 as the upbeat performance of major European currencies, especially the GBP, caused the greenback to lose interest. At the moment, the DXY is losing 0.32% at 90.47.
In the meantime, the positive shift witnessed in market sentiment could limit USD/JPY's downside in the second half of the day.
Coronavirus vaccine rollout and renewed hopes for an EU-UK trade deal are allowing risk flows to dominate the financial markets at the start of the week. Reflecting the risk-on environment, the S&P 500 Futures are up 0.7% on the day and the 10-year US Treasury bond yield is rising by more than 2%.
Earlier in the day, the data from Japan showed that Tankan Large Manufacturing Outlook and Non-Manufacturing Outlook both improved more than expected for the fourth quarter but was largely ignored by the market participants. The US economic docket won't be featuring any significant data releases on Monday.
Technical levels to watch for
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.