The U.S dollar has moved sharply lower against the Japanese yen, as global equities prices plummet lower, following a broad-based shift towards risk-off trading sentiment. The USDJPY pair has fallen to a new monthly-low, hitting 108.45 overnight, after the Nikkei225 index suffered its biggest one-day decline since November 1990. Price-action on the pair has now recovered slightly heading into the European trading session, with buyers and sellers testing overall demand around the pivotal 108.98 level.
The USDJPY pair still retains a strong bearish bias while trading below the 108.98 level, further losses towards 108.45 and 107.80 seem likely.
If USDJPY buyers can push the pair above the 108.98 level, we may see a correction back towards the 109.44 and 109.77 levels.
