The Dollar/Yen drops as US Treasury yields fall and global equities fail to make an impact. The pair was mainly driven by movements in the US Dollar as no significant change from global equities failed to make an impact on the demand for the Japanese Yen. The greenback pushed the currency pair lower as US yields dropped following the release of a dovish FOMC Meeting minutes. The FOMC Meeting Minutes showed that the future path of monetary policy is unclear and a set of Fed members are reluctant to raise rates due to lack of inflationary pressures. For today, the pair will be mainly driven by Fed Powell's speech and the performance of global equities.
The Dollar/Yen break below the 13-period moving average as a reflection of a shift in the short term momentum of the pair. The break below the 13-period moving average shows that the pair's momentum is currently bearish. The next leg downwards will be triggered by a break below the 107.70 support paving the way for a drop towards 107.10. This scenario might be canceled if prices rise back above the 13-period moving average.
Support: 107.70 / 107.10
Resistance: 108.50 / 109.20