FxWirePro: USD/JPY extends weakness below 108 handle, dollar sell-off continues unabated

USD/JPY chart - Trading View 

USD/JPY was trading 0.16% lower on the day at 107.71 at around 04:10 GMT, outlook bearish.

US dollar sell-off continues unabated, driving the pair lower. No respite from bears seen yet.

Japan government announced third emergency for Tokyo, Osaka, Kyoto and Hyogo on Sunday as the nation battles virus woes.

Market’s risk-off mood weighs on the upside. S&P 500 Futures extend mild losses while Japan’s Nikkei 225 drops by 0.45%.

On the data front, Japan’s Corporate Service Price Index for March came in as 0.7% YoY versus upwardly revised prior of 0.0%.

Technical bias for the pair remains strongly bearish. Stochs and RSI are sharply lower, Price action has slipped into daily cloud and volatility is rising.

The pair is on track to test 50% Fib retracement at 106.77. Retrace above cloud will negate any bearish bias. 

Japan February’s Leading Economic Index and U.S. Durable Goods Orders for March will be in focus for fresh impetus.