The Dollar fell against the Yen to 106.48, its lowest in almost a month, as the Japanese Yen was initially backed by risk-aversion, while the dollar tumbled following the release of the ISM Non-Manufacturing PMI which fell to its lowest in three years and reinforced concerns about an economic slowdown in the US. The news triggered a run to safety, with Wall Street extending its latest decline and US Treasury yields plummeting. US indexes changed course in the afternoon, which helped the pair to rebound temporarily. Today’s attention is centered on the US Nonfarm Payroll report. A positive data will boost the Dollar up in the short-term, and a negative data will increase the probability of a rate cut, adding further pressure on the greenback.
The Dollar-Yen broke below a major support level 107, and the 200-day moving average, confirming the Double Top pattern, exposing further downside on this pair. The bulls on the other hand, need to break back above 107.22 to regain control and distort this bearish market structure.
Support: 106.75/ 106.48
Resistance: 107 / 107.22