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USD/JPY drops to 100-day MA as S&P 500 futures signal risk aversion

  • USD/JPY dropped to the crucial 100 - day moving average (MA) support soon before press time.
  • The JPY is pushing higher against US currency amid signs of risk aversion - S&P 500 futures are down 0.8 percent.

The anti-risk Japanese yen is solidly bid in Asia amid signs of risk aversion.

As of writing, the USD/JPY pair is trading at 112.35, having clocked a low of 112.24 a few minutes ago. More importantly, it has tested the crucial 100-day MA support of 112.27.

The losses are likely associated with the rising evidence of the global growth slowdown and the resulting risk-off tone in the equities.

China released a below-forecast November import and export growth figure over the weekend, highlighting the weakening global and domestic demand. Simply put, the world's second-largest economy may suffer a deeper slowdown than previously expected.

That is likely weighing over the risky assets on the first trading day of the week. The S&P 500 futures are currently down 0.8 percent. Meanwhile, Asian equities are a sea of red - Japan's Nikkei is down 2.28 percent and stocks in Australia, New Zealand, South Korea, and Hong Kong are down between 1 percent to 2.2 percent.

Looking forward, the USD/JPY pair may find acceptance below the 100-day MA if the risk aversion worsens and the spread between the US 10-year and two-year yield continues to narrow.

USD/JPY Technical Levels

USD/JPY

Overview:
    Today Last Price: 112.34
    Today Daily change: -29 pips
    Today Daily change %: -0.257%
    Today Daily Open: 112.63
Trends:
    Previous Daily SMA20: 113.23
    Previous Daily SMA50: 113.06
    Previous Daily SMA100: 112.26
    Previous Daily SMA200: 110.58
Levels:
    Previous Daily High: 112.93
    Previous Daily Low: 112.55
    Previous Weekly High: 113.83
    Previous Weekly Low: 112.23
    Previous Monthly High: 114.25
    Previous Monthly Low: 112.3
    Previous Daily Fibonacci 38.2%: 112.7
    Previous Daily Fibonacci 61.8%: 112.79
    Previous Daily Pivot Point S1: 112.48
    Previous Daily Pivot Point S2: 112.33
    Previous Daily Pivot Point S3: 112.1
    Previous Daily Pivot Point R1: 112.86
    Previous Daily Pivot Point R2: 113.08
    Previous Daily Pivot Point R3: 113.24

 

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