USD/JPY a deadbeat in Tokyo as well? heading lower still on the open

Currently, USD/JPY is trading at 112.58, down -0.48% on the day, having posted a daily high at 113.15 and low at 112.58.

US Dollar slips below 98, touches lowest level since early November

USD/JPY was weakening in early Asia as the early birds get ahead of the crowd and the Tokyo open following on from the previous shift's bearishness surrounding the greenback. USD/JPY lost the 113 handle at the turn of the US session in thinner trade falling to a low of 112.61 prior to the Tokyo open. 

Traders hitting bids and offers at the open see the yen changing hands with a bullish bias vs the greenback and should the headlines continue to report on the concerns over the political tensions in the US Administration around the scandal surrounding US President Trump, such as those seen in the NY Times recently, involving classified information being unveiled to Russian diplomats, the DXY could soon find itself under water below the 98 handle and USD/JPY spread narrowing is a plus for USD/JPY bears.

Dollar weakness on weaker US interest rate expectations - ANZ

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart stands a bullish 100 SMA, followed by 112.00, the 38.2% retracement of the November/December rally. "In the same chart, the RSI indicator aims higher within the negative territory, but the RSI indicator anticipates some further declines, heading south around 40."

How low can USD/JPY go?

Meanwhile, should the yen really pick up the pace and take out the 112.00/20, 111.51 comes into play as does 1110.10. Below there, analysts at Commerzbank note 108.13 as a key level guarding 107.50, the July 2016 high and possibly 106.85, the 61.8% retracement. "This is is not our favoured scenario. We regard 108.13 as a key low in place."