The Dollar/Yen drops lower following the break of the 50-period moving average. Although US equities rebounded during yesterday’s US trading session, traders demanded the Yen and other safe haven assets as uncertainty and fear in the market loomed given the series of resignations related to the controversial Brexit deal. The drop in the pair is also attributed to the drop in US Treasury yields which decreased the demand for the greenback. For today, Dollar/Yen traders need to be guided by the performance of US equities, performance of US Treasury yields, and developments related to Brexit.
The pair breaks the 113.56 support and drops towards the 113.08 support level. The price momentum has clearly shifted as prices broke below the 13 and 50-period moving average. The price target for the Triple Top reversal pattern was reached earlier during yesterday's trading session. however, prices may fall further if uncertainty in the market continues to rise. The next leg lower will be confirmed if prices break below the 112.97 support which also coincides with the 200-period moving average.
Support: 113.56 / 113.08
Resistance: 114.08 / 114.50