The pair of Dollar-Yen fell to a minimum of the session 109.27 after the speech of the President of the Fed, Yellen at Jackson Hole does not offer evidence on the monetary policy and the outlook for interest rates.
The speech Yellen was in large measure a recitation of the financial crisis, the failures of regulatory and how things have improved since then.
The yield curve of the Treasury flattens
The Yen to the dollar, which took on new offerings prior to the speech Yellen fell from the intraday high of 109.84 to 109.27 and was last seen operating around 109.41.
The yield curve or the spread between the yield of treasury u.s. 10-year and the performance of the Treasury to 2 years is reduced/smoothed to 84 basis points with respect to the publication the previous day of 85 basis points. The flattening of the yield curve is negative for the USD.
Levels of USD/JPY
A rupture sustained above 110.00 (resistance at the trend line low of 114.49 and 110.95) would open the door to the resistance at 110.95. A break there would confirm the reversal of a bullish trend in the short term and will expose the DMA 200 at 112.47. On the negative side, support is seen at 109.38 (DMA 5), that if broken could cause a fall to 108.85 (minimum of the previous day) and 108.60 (a minimum of 18 August).