The Dollar/Yen retreats sharply as a drop in US treasury yields decrease the demand for the greenback. The US 10 year treasury yield dropped below the 3% which caused investors to demand less and less US Dollars. The drop in the Dollar/Yen was also caused by a downward retracement in global equities following the three day rally. For today, Dollar/Yen investors need to continue monitoring the performance of US yields and global equities to guide their trading behavior.
The Dollar/Yen dropped towards the 200-period moving average. This level is important as it will guide traders into knowing the future directional bias of the pair. The break below the 200-period moving average and the 112.84 support will confirm that the directional bias of the pair became bearish and cause a drop towards the 112.50 support.
Support: 112.84/ 112.50
Resistance: 113.32 / 113.68