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Commentary
USDJPY has dropped significantly today as equities have sold off from all time highs in the past few trading sessions due to renewed fears surrounding the covid delta variant.
The Yen is seen as a safe haven currency and the covid crisis saw the currency pair drop towards 102 before rebounding and rising as high as 111.
We feel the currency pair could continue it's downward momentum in particular with falling US treasury yields despite rising inflation .
However, we would want the 20 day MA to moving average at 110.521 to move below the 100 day MA at 109.473 to indicate a sell alert and then the 50 day MA at 109.931 to cross the 100 day MA confirming the sell signal.
We await Japanese inflation data tomorrow and US market PMI on Friday for any significant price action.