Risk-aversion drags USD/JPY lower

On the back of slide in Asian stock markets and crude oil prices, there is a renewed investor interest in buying the perceived safe-haven currency, JPY.


USD/JPY bearish bias remains

The USD/JPY pair erased all of its yesterday's gain and fell to 108.76 before recovering a bit to 108.90 at the time of writing.

The pair on Tuesday again confirmed a strong resistance near 109.50 level and until the pair decisively breaks through this strong resistance, traders are likely to remain biased on the bearish moves for the pair. Above 109.50 resistance, the pair seems to immediate dart towards 110.00 psychological mark ahead of 110.30 resistance.

On the downside, weakness back below 108.75 level should encourage fresh short-scalp trade, dragging the pair immediately towards 108.50 support. The pair could eventually drop back below 108.00 mark support to retest its recent daily closing lows support near 107.90 region.