The Dollar/Yen drops towards the 112.00 support level as US stock indices continue to fall. Geopolitical uncertainty, trade tensions and worries about the success of U.S corporate earnings are driving investors away from high beta assets such as stocks towards lower beta assets and safe haven instruments including the Japanese Yen. As fears and uncertainty continue, the Yen will strengthen further and pressure the Dollar/Yen lower.
The Dollar/Yen falls towards the 111.92 support level for the third time this week. As seen in the chart below, moving averages are slightly pointing downwards signaling that another drop is coming up soon. However, this drop will not be confirmed up until the pair breaks below the 111.76 support level. The break below the 111.76 will expose the next support level at 111.32.
Support: 111.76 111.32
Resistance: 113.12 113.75