• USD/JPY extends losses for a  fourth straight day.
  • US Dollar Index struck fresh multi-year lows under 90.50.
  • Wall Street looks to open sharply higher.

USD/JPY extended its selloff on Monday dropping to its lowest  level since early November at 103.59. USD selloff continues

The broad USD weakness appears to be the main factor driving the USD/JPY lower. The US Dollar Index (DXY) declined  to its lowest level since April 2018 at 90.43 as European currencies outperformed, especially the GBP. At the time of writing, the DXY is trading -0.32% at 90.47.

The improving market mood  could cap USD/JPY losses in the latter part of the day.

Covid vaccine rollout and renewed optimism for EU-UK trade deal are boosting risk flows. The S&P 500 Futures are up 0.7% on the day.

Earlier data from Japan showed that Tankan Large Manufacturing Outlook and Non-Manufacturing Outlook both improved by more than forecast in Q4The US economic calendar is quiet on Monday.