The Dollar/Yen crashes down over 1% from last week’s high as both US Treasury yields and global equities drop. The drop in US Treasury yields caused a sell-off in the US Dollar, while a drop in global equities led to an upsurge in demand for safe haven assets such as the Yen. For today, alongside the performance of US Treasuries and global equities, the pair will be driven by the results of the housing figures coming out of the US.
Prices broke below all the three major moving averages in a single day, signaling an instant and quick shift in the directional bias of the pair. The next leg downwards for the pair will take place after a break below the 112.21 support. After the drop below the 112.21 support, the pair is expected to drop all the way towards the next support level at 111.75.
Support: 112.21/ 111.75
Resistance: 113.00 / 113.50