USD/JPY extends bearish slide further below 111.00 handle

The USD/JPY pair prolonged its ongoing bearish slide and tumbled below the 111.00 handle to a four-month low. 

Currently trading around 110.80-75 region, spot ran through fresh offers and accelerated the downslide during early NA session amid risk-aversion environment in wake of yet another weaker opening for the US equity markets. Global risk-off mood boosts demand for traditional safe-haven assets, including the Japanese Yen, which has been one of the key factors driving the pair lower for the seventh consecutive session.

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Widespread opposition to Trump administration's proposed replacement of Obamacare has further raised uncertainty over Trump's promised pro-growth economic policies and $1 trillion in infrastructure spending. Adding to this, the post-Fed slide in the US treasury bond yields further weighed on the greenback and has failed to halt the pair's slump to its lowest level since Nov. 22.

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On the economic data front, a slightly weaker than expected existing home sales data did little to provide any immediate respite for the US Dollar bulls. 

Technical levels to watch

Valeria Bednarik, Chief Analyst at FXStreet writes, "in the 4 hours chart, the bearish momentum is clearer, given that technical indicators maintain their bearish slopes, despite being in oversold territory. As long as the price remains below 111.60, chances of an upward move will be well-limited, while a break below the daily low exposes the pair to a continued decline towards 110.00."