USD/JPY is at risk of extending its slump below 103.15

The USD/JPY pair consolidates Monday’s losses in the 103.40 price zone, as the market’s sentiment remains sour. Bears are set to pressure the 103.15 support, Valeria Bednarik, Chief Analyst at FXStreet, reports.  

Key quotes

“Investors are still trying to digest the news that a new coronavirus strain could be spreading in Europe after the UK announced it discovered it back in September. Given it’s highly contagious, further lockdowns and travel bans are likely, which means another delay in an economic comeback.”

“The 4-hour chart shows that the price is barely holding above a flat 20 SMA, while below the larger ones, which maintain their bearish slopes. The Momentum indicator is crossing its midline into negative levels with limited strength, while the RSI indicator holds directionless around 47.” 

“The USD/JPY pair will likely accelerate its decline on a break below 103.15, the immediate support level.”