- Yen rises amid risk aversion due to geopolitical tensions.
- USD/JPY is trading with a bearish bias while below 115.10.
The USD/JPY maintains daily losses and trades below 115.00 in the US session on Monday. The pair bottomed out at 114.79, modestly above last week’s low. The dollar is mixed, while the yen is mostly higher across the board.
Yen Benefits as Putin’s Comments Hit Markets
The Japanese yen is among the best performers on Monday, rising at a moderate pace, supported by risk aversion. Stock prices are falling in Europe with the CAC 40 down 1.48% and the DAX down 1.36%. US markets are closed due to President’s Day. Dow Jones futures fell 0.68%. DXY is down 0.15% from lows. It remains in the range 96.15/95.70.
Market sentiment deteriorated amid rising tensions regarding the border with Ukraine. Russian President Vladimir Putin mentioned that Russia should recognize the independence of Ukraine’s breakaway regions if no process is done.
USD/JPY testing key short-term support
USD/JPY is moving with a bearish bias in the very short term, testing the 114.75/80 support area. A break lower should clear the way for more losses, targeting 114.45 initially.
A recovery above the 20 SMA on the 4 hour chart, currently at 115.10, would change the bias from negative to neutral.
Technical levels
Source: Fx Street
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