Strong drop on the USD/JPY

The US Dollar has been losing ground versus its main counterparts during today’s session, especially versus the Yen and the Swiss Franc after the disappointing durable goods orders out of the United States. The core durable goods reading came out surprisingly lower than expected for the month of October, after being on the upside during three months in a row. On the daily chart of the USD/JPY we can see that the price has broken below its 200 day EMA (blue line), around the 111.77 level to drop to the 111.55 level. From this point on, the USD/JPY has practically the road clear to drop all the way to the low at the 109.54 level, but it could have some minor pullbacks on its way down. The same 200 day EMA may become now resistance, but the 55 day EMA (purple line) or the 113.00 level are still its most relevant resistance zone.