USD/JPY has declined in the Tokyo open following suit of the price action overnight in the U.S. shift when investors ran for cover due to the Brexit fears as polls tilted in favour of the leave camp for the last day of May ahead of the referendum on June 23rd.
Wall Street was also dampened by energy sector losses and the Asian markets opened negative following the lackluster performance overnight. USD/JPY is now en-route for a full 100 pip loss on a break below 110.30, where lows have reached 110.41 so far at time of writing. The risks ahead for the day come in the form of Chinese PMI's, Aussie GDP and indeed on going concerns over what a Brexit could mean for financial markets and the Eurozone.
USD/JPY levels
111.50 is a near term resistance on a correction guarding recovery attempts on to the 112 handle before the 100 dma that is located at 112.32. "In the 4-hours chart, the technical indicators are about to cross their mid-lines towards the downside, whilst the price is far above a bullish 100 SMA, currently at 109.50, the probable bearish target should the pair keep falling," explained Valeria Bednarik, chief analyst at FXStreet.
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