USD/JPY keeps the weekly bearish gap near 1-1/2 month lows

   •  The global flight to safety continues to underpin JPY’s safe-haven appeal.
   •  A goodish pickup in the US bond yields helps defend 110.00 handle.

The USD/JPY pair held on to its weaker tone near 1-1/2 month low, albeit has managed to defend the key 110.00 psychological mark, at least for the time being. 

The pair opened with a weekly bearish gap and was being weighed down by global flight to safety amid mounting currency crisis in Turkey. A steep decline in the Turkish Lira roiled global financial markets and was eventually seen underpinning the Japanese Yen's safe-haven demand.

After hitting a record low on Monday, the Turkish Lira found some support after the Central Bank of the Republic of Turkey's (CBRT) move to lower the required reserves by 250 bps for all maturities. This coupled with a goodish pickup in the US Treasury bond yields further assist the pair to hold its neck above the 110.00 handle. 

There isn't any major market-moving economic data due for release on Monday and hence, the broader market risk sentiment might continue to act as an exclusive driver of the pair's momentum ahead of Tuesday's Chinese data dump.

Technical outlook

Yohay Elam, FXStreet's own Analyst explains: “Looking down, the pair has very little support. 110 is noteworthy as a round line and also the confluence of the SMA 200-one-day and the BB 15m-Lower, which are not that potent. Lower, 108.96 is the Pivot Point one-month Support 2.”

“A move to the upside will hit another confluence zone at 110.79 with the Fibonacci 23.6% one-week, the Fibonacci 38.2% one-day, and the Simple Moving Average 10-4h,” he adds further.