The USD/JPY breaks below the 200 day EMA

The yen has been rallying versus its main counterparts like the Dollar, the Euro, and the Pound after the risk aversion came back strong into the markets following the huge drops seen on the main stock indices around the world. The pessimism among investors and traders has started to rise over the doubts of Donald Trump’s ability to implement the stimulus package that he has promised. Due to the fact that the Yen is a safe haven instrument, the Japanese currency rallies and on the daily chart of the USD/JPY we can see that the pair has broken below its 200 day EMA (blue line), which is currently around the 111.30 level. If the pair continues falling, its next support could be the 109.00 level. To the upside, the 55 day EMA (purple line) along with the 114.00 level could act as resistance.