USD/JPY keeps the red near session lows, around 109.00 handle

The USD/JPY pair maintained its offered tone through early NA session and is currently placed near session tops, around the 109.00 handle. 

The pair failed to build on Friday's modest rebound from 4-month lows and remained under some renewed selling pressure for the fourth consecutive session on Monday. The US political jitters, coupled with fading prospects of any additional Fed rate hike action in 2017 kept the US Dollar bulls on the back-foot and failed to assist the pair to register any meaningful recovery. 

Adding to this, the prevalent risk-off market sentiment, as depicted by weaker trading sentiment around European equity markets and indications of a weaker opening in the US, was also seen boosting the Japanese Yen's safe-haven appeal and further collaborated to the pair's ongoing pull-back from the vicinity of the 111.00 handle, touched last week. 

In absence of any major market moving economic releases from the US, traders on Monday would continue to take cues from the broader market risk sentiment and the USD price dynamics. 

   •  USD/JPY attention is now on 110.00 – UOB

Technical outlook

Valeria Bednarik, Chief Analyst at FXStreet writes, "the pair maintains its bearish tone, given that in the daily chart, technical indicators resumed their slides after failing to regain positive territory at the beginning of the week, while the price remains well below its 100 and 200 DMAs. Shorter term and according to the 4 hours chart, the pair is well below bearish 100 and 200 SMAs, whilst technical indicators barely corrected oversold conditions before losing their upward strength, also supporting additional declines ahead."