USD/JPY breaks below 106 as Wall Street bears are back
- Investors are buying Yen for its safe-haven appeal.
- The three main US indices are all plunging.
The USD/JPY is trading at around 105.75 down 0.48% as the three main US stock indices are in the red on Easter Monday while trade wars fears and tech stocks are bringing the whole US market down. Earlier, China announced that it will impose trade tariffs on pork and fruits coming from the US.
The Yen is strong on the day as investors are buying the Japanese currency for its safe-haven quality in times of stock market weakness and geopolitical tensions. The S&P 500 Index is trading below 2,600 while the low made in February was at 2,529. The tech-heavy Nasdaq is plummeting as well, trading below the 6,400 mark and the Dow Jones Industrial Average is only a few ticks away from testing the February’low at 23,360.
Meanwhile, the USD Dollar Index (DXY) is keeping its gains made last week and is trading around the $90 mark.
The USD/JPY is taking cues from geopolitical developments and stock-market action in a data-light start to the week while Friday will see the most important macroeconomic news of the week with the Non-Farm Payroll (NFP)
USD/JPY daily chart
The USD/JPY is trading below its 50-period simple moving average. The bears managed to break the 106.00 handle to the downside.
USD/JPY 4-hour chart
The USD/JPY is finding intraday support at 105.76 at the 50-period simple moving average, while the momentum remains bearish. The next support is seen at 105.13 swing low and 104.63 cyclical low established on March 25th. Resistance is seen at the high of the day at 106.47 and at the 107 handle.