USD/JPY is hurting and risks a deeper retreat after U.S. President Trump raised doubt on the planned summit with North Korean leader and as Japanese investors dump Turkish assets which has caused significant flows into the yen
USD/JPY is on course for its second biggest one-day fall of 2018 if it closes at 109.80 or below. The options market, which is short gamma, is also signaling potential USD/JPY volatility and further losses
However, USD/JPY bears need a daily close below the broken 200-DMA, which is currently at 110.20 and the 109.78 Fibo level — 23.6% retrace of the 104.56 to 111.39 rise — for the decline that began in Asia to persist in coming days. This will heighten the risk of further losses to the 30-DMA which is now at 109.13. Failure to close below the 200-DMA will alleviate USD/JPY pressure.