The Dollar/Yen pair continues to trade in parallel with U.S stocks as weakness within U.S equities drive investors away from the greenback towards other safe haven currencies such as the Yen. Investors are mainly worried that the continuous rate hikes from the Federal Reserve will slow down the economy and outweigh the benefits of the tax cut on earnings. Moreover, investors are worried about the result of the Brexit negotiations and the political scene within the EU as the union disagrees with Italy on its proposed budget plan for 2019. Additionally, investors are worried about the economic consequences of the political and trade tensions between the US and other countries.
Depending on today's US equity performance, the pair will either break above the range exposing the 113.75 level or break below the range exposing the 111.63 level. Investors are clearly unbalanced with their opinion on the currency given that the three major moving averages are tangled together and prices trade around a tight range.
Support: 111.92 111.63
Resistance: 113.12 113.75