The U.S dollar continues to trade on the back-foot against the Japanese yen currency, after a strongly bearish Friday price-close, price-action now hovers around the 112 handle. A broad-based sell-off in global stock has led to a further strengthening of Japanese yen, as traders move into the perceived safety of the yen currency. USDJPY traders are likely to remain cautious early week, with the breakdown of coalition talks in Germany and the release of the Federal Open Market Committee Meeting Minutes.
The USDJPY pair remains bearish on an intraday basis while trading below the 112.47 technical level. Further losses towards the 111.72 and 111.36 look increasingly likely.
Should the USDJPY pair trade back above the 112.47 technical level, buyers will likely push price-action towards the 113.07 resistance level.