And these fears supported the demand on safe heavens, pushing USDJPY down to 10-month low at 107.31. However, nothing scary happened, and it recovered the demand on US Dollar .
The pair opened Monday with a gap higher at 108.19, and is ready to do more. This week promises a lot of market movers, including US CPI and retail sales data. If American data shows stronger than expected numbers, it may trigger profit taking on such pairs like USDJPY .
The pair has lost around 6% during the last two months, and the Bank of Japan hardly likes the trend. It would step in with verbal interventions rather sooner than later. And the market understands that.
Besides, USD weakness on geopolitics and slower rate hike expectations may ran out of steam these days, sending USDJPY to the nearest target at 109.00