FxWirePro: USD/JPY opens the week on a bearish note, snaps 3-day winning streak

USD/JPY chart - Trading View 

USD/JPY takes a U-turn from yearly highs just shy of 110 handle hit on Friday's session.

The major was trading 0.11% lower on the day at 109.54 at around 04:45 GMT, outlook remains bullish.

The pair is showing a minor pull back, but a widening US/Japan rate differential is likely to keep bias bullish.

Virus woes, US-China trade war fears remain challenges to the market sentiment and are likely to keep safe-haven dollar bids.

Further, the latest BOJ Summary of Opinions conveys the Japanese central bank’s unaffected support for the easy money measures.

Lack of major data/events during the holiday-shortened week, ahead of Friday’s US employment data, risk catalysts remain as the key driver for price action.

Bearish divergence of oscillators from price action raises scope for some downside. The pair is likely to form Double Top at 109.85.

Major trend is still bullish. Dip below immediate support at 5-DMA at 109.11 will see dip till 21-EMA at 108.35.