The Dollar/Yen drops below the 200-period moving average following weakness from both the US Dollar and US stock indices. The US Dollar’s weakness guided the pair lower as investors began to price in a break in the series of rate hikes from the Fed with US Treasury Yields falling sharply. Additionally, the Japanese Yen strengthen due to an increase in safe haven demand following the sharp drop in US equities. For today, the pair will be mainly driven by the movements in the US Dollar as investors await the release of the NFP report.
The pair breaks below the 200-period moving average indicating that the pair's bias became bearish. Based on the chart below, prices are continuously rejecting the break above the 13-period moving average while trending downwards. The next key level to monitor on the pair is the 112.50 support level. If the NFP report showed strong economic results from the US and the US Dollar rallied, then the pair might recover back above the 200-period moving average and trade above the 113.00 mark.
Support: 112.84/ 112.50
Resistance: 113.32 / 113.68