• Yen rises amid risk aversion on the back of geopolitical tensions.
  • USD/JPY trades with a bearish bias while under 115.10.

The USD/JPY is holding onto daily losses and trading under 115.00 on Monday’s American session. The pair bottomed at 114.79, slightly above last week’s low. The dollars is mixed while the yen is mostly higher across the board.

Yen benefits as Putin’s comments hit markets

The Japanese yen is among the top performers on Monday, rising at a modest pace, supported by risk aversion. Equity prices are falling in Europe with the CAC 40 falling by 1.48% and the DAX 1.36%. US markets are closed due to President’s Day. Dow Jones futures are falling 0.68%. The DXY is falling 0.15%, off lows. It remains in the 96.15/95.70 range.

Market sentiment deteriorated amid rising tensions regarding the Ukrainian border.  Russian President Vladimir Putin mentioned that Russia should recognize the independence of separatist regions of Ukraine if no process is made.

USD/JPY testing key short-term support

The USD/JPY is moving with a bearish bias in the very short term, testing the 114.75/80 support area. A break lower should clear the way to more losses, targeting 114.45 initially.

A recovery above the 20-SMA (Simple Moving Average) on the four-hour chart, currently at 115.10, would change the bias from negative to neutral.

Technical levels

This article was originally published by Fxstreet.com.Read the original article here.

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