USD/JPY gaps lower on US Government concerns; 97.38 next support

FXstreet.com (Barcelona) - USD/JPY gap lower reflects the severe “risk off” attitude going on globally late Sunday / early Monday – so severe that even the US Dollar is being shunned in favor of the Yen.

USD/JPY reflecting Yen’s status as only safe-haven currency right now

Real government concerns in Italy and the last minute posturing going on in the US political arena have global investors sticking with the Yen as THE safe-haven currency heading into the new week. The USD/JPY has gapped lower on Washington-induced DXY weakness and an appetite for the perceived safety of the Yen.

Technical outlook for USD/JPY

Technicians are eyeing the 97.39 level as the next step lower on the staircase if possible support levels for USD/JPY. Resistance will be Friday’s close of 98.26 with 99 above that.