Valeria Bednarik, chief analyst at FXStreet explained the poor performance of stocks alongside with commodities' weakness, resulted in an increased demand for the Japanese yen at the beginning of the week.
"The safe haven asset gained against a mute EUR, and the EUR/JPY extended its decline down to 126.44, ending the day a handful of pips above this last, but retaining the bearish tone in the short term. Technically, the 1 hour chart shows that the price has extended below the 200 SMA early US session, while the technical indicators have turned back south within bearish territory, and after correcting oversold conditions."
"In the 4 hours chart, the technical indicators have lost their bearish strength, but remain below their mid-lines, and with no signs of turning south. The pair found some buying interest around the 100 SMA in this last time frame around the mentioned low, suggesting a break below it required to confirm additional declines for this Tuesday."