May 8, 2019, | SQUARED DIRECT - The Dollar/Yen fell huge yesterday as investors lost patience and turned risk-averse despite China’s Vice Premier will be traveling to Washington for the next round of negotiations. The Dow futures had dropped more than 470 points sending safe havens higher.
The current market sentiment is revolved around the US-China Trade war, thus investors will be watching closely for any development in this area. Earlier today, Chinese Trade Balance and exports missed market forecast, boosting fears of a possible deeper economic slowdown.
USDJPY technical analysis
The Dollar/Yen continued to fell yesterday by breaking below 110.30 support. Market sentiment is turning very bearish by the minute; if the bulls lose 110 (S1) and 109.70 (S2), key support levels, we could see more bearish momentum. However, a break above 110.30, could take the price higher to retest 110.85 (R2).
Support: 110 / 109.70
Resistance: 110.30 / 110.85
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