USD/JPY extends losses to 5-day low

USD/JPY extended its decline during the New York session and posted fresh 5-day lows as the yen remains among the stronger currencies across the board.

USD/JPY has dropped more 100 pips over the last sessions, breaking decisively below the 110 handle to hit its lowest level since Thursday at 109.11 in recent dealings. At time of writing, the pair is trading at 109.16, recording a 0.88% loss on Monday.

The dollar strengthened last week on the back of FOMC minutes, which flagged a possible June rate hike, but the rally was capped by the 110.60 area on Friday.

USD/JPY levels to watch

As for technical levels, next supports could be faced at 108.75 (21-day SMA), 108.45 (May 16 low) and 108.22 (May 12 low). On the flip side, resistances are seen at 109.96 (50-day SMA), 110.37 (May 19 high) and 111.87 (Apr 28 high).