USD/JPY: Continuation of the downtrend

The continuation of the selling pressure in the greenback coupled with firm haven inflows supporting the Japanese currency is forcing USD/JPY to return to the sub-108.00 zone and record fresh 2020 lows near 107.30, Pablo Piovano from FXStreet informs.

Key quotes

“Unremitting concerns around the COVID-19 and the impact on global growth keep investors’ sentiment well depressed and open the door for a deeper pullback in the short-term horizon.”

“The loss of the 200-day SMA at 108.39 has now opened the door for the continuation of the downtrend to, initially, the late September low at 106.96 ahead of the October 2019 low at 106.48.”

“However, USD/JPY is approaching the ‘oversold’ territory, which could motivate some bullish attempts.”