The Dollar/Yen pushes lower as traders turn towards the safe haven Yen as US stock indices drop. Yesterday, US stock indices pushed lower which deteriorated sentiment among investors driving them towards safe haven investments including the Japanese Yen. For today, investors will need to continue focusing on the performance of US equities as they remain the main driver to the Dollar/Yen pair’s performance. Additionally, investors need to watch the release of the US Retail Sales figure as it will play a part in the intra-day's performance of the pair from the US Dollar's side.
The pair forms a bearish reversal pattern, Triple Top and pushes lower. The confirmation of the pattern came after the break below the support line of the pattern which also coincided with the 50-period moving average. The break below the 50-period moving average also signals a shift in the medium term bias of the pair and strengthens the bearish momentum. The target for the Triple Top reversal pattern is at the 113.08 support.
Support: 113.56 / 113.08
Resistance: 114.08 / 114.50