The anti-risk Yen was supported during yesterday’s session after a broad dollar weakness amid increased fears about a US economic slowdown spooking investors away from high-yielding assets. Wall Street collapsed, with the three major indexes losing roughly 2.0% each, while US Treasury yields fell to their lowest in a month. US recessionary fears are back in the market place forcing the Fed to cut rates by the end of this month. If the US ISM Non-Manufacturing data disappoints the market today, then the Yen will likely continue to be favored pushing price below a major support, 107.
The Dollar-Yen continued to sell-off yesterday and found temporary support at 107 and the 200-day moving average. If this level breaks, then the Double Top pattern will be confirmed, signaling much more downside on this pair. The bulls on the other hand, need to break above 107.22 to extend their gains towards 107.50 in the short-term.
Support: 107/ 106.75
Resistance: 107.22 / 107.50