USD/JPY hangs near 4-month lows, around mid-105.00s

   •  USD continues to be weighed down by Trump’s protectionist stance.
   •  Reviving safe-haven demand continues to benefit JPY.

The USD/JPY pair now seems to have entered a consolidation phase and was seen oscillating within a narrow trading range, closer to Friday's near 4-month lows.

The Japanese Yen continues to benefit from reviving safe-haven demand, amid concerns over a global trade war and has been one of the key factors weighing on the major. 

The pair, however, seems to have found some buying interest ahead of the key 105.00 psychological mark and was being supported by easing bearish pressure surrounding the US Dollar. 

However, the BoJ governor Haruhiko Kuroda's comments, acknowledging the possibility of a stimulus exit, kept a lid on any meaningful recovery and held the pair within striking distance of multi-month lows.

Moving ahead, traders now look forward to the release of US ISM non-manufacturing PMI for some fresh impetus later during the early NA session. In the meantime, broader market risk sentiment might continue to act as an exclusive driver of the pair's momentum on Monday. 

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes: “The spot looks set to test 100.71 (50 percent Fib retracement of 2011 low - 2015 high) in the next six months or so. A violation there would expose 98.79 (Brexit low).”

“A close above the trendline would allow a stronger corrective rally to descending 50-day MA (now seen at 108.90). However, the 5-day MA and 10-day MA are trending south, indicating a bearish setup. Thus, sustainability of gains is under question” he added further.