The Yen was one of the big movers in trade on Monday. A declining USD help push the USD/JPY through key support with relative ease. 111.00 didn’t offer much of a fight as traders decided to dump the USD.

The Yen has been in a range from 111.00-113.50 for the best part of two months. Price has been relatively confined to those support and resistance levels.

The last time we got a really big run to the downside was when the Yen hit the 107 handle. That was when there was a flight to safety thanks to the North Korean saga. Geopolitical fears saw the USD/JPY tumble as demand for the JPY began to soar. Since then there has certainly been a sharp rally.

Key Support Below

The last time we broke through the 111.00 we really fell away sharply. That isn’t quite the same this time around.

However what is noteworthy is that there isn’t all that much by way of support. There is some degree of support at 110.00. However, it is really quite weak I would suggest.

To me, that means that we have the potential for some more downside. I wouldn’t be a buyer at 110.00 and if anything I would be selling pullbacks looking for more downside to come.