The Dollar/Yen drops slightly lower as US stock futures point towards a continuation in this week’s bear run. For months now, the Dollar/Yen’s movement has been heavily connected to the performance of US stocks as a drop in performance leads to fear within the investment community and drives investors towards safe haven assets/currencies such as the Yen. Yesterday and today is no different as the pair’s movement is somewhat pegged to US stocks. With that being said, Dollar/Yen traders showed keep a close eye on the performance of US stocks to guide them through today’s trading.
The pair is currently trading around the three major moving averages as a signal of uncertainty and indecision between investors. If prices broke above the three moving averages then the 113.65 resistance level will be exposed. If prices broke below the three major moving averages then the 112.42 support level will be exposed.
Support: 112.42/ 111.95
Resistance: 113.11 / 113.65