USD/JPY falls back to 4H 50-MA as S&P 500 futures drop 0.6%

• USD/JPY is closing in on 4-hour 50-MA support.
• The yen goes bid, tracking the drop in S&P 500 futures.

The signs of risk aversion in the US index futures seem to have put a bid under the Japanese Yen.

As of writing, the S&P 500 futures are down 0.60 percent. Consequently, the USD/JPY is losing altitude, now trading just short of the 4-hour 50-MA support 109.24.

Further, the US 10-year yield is retreating from the session high of 2.80 percent. So, there are signs the previous day's stock market recovery may not last long. Hence, the Yen may continue to rise, unless the S&P 500 futures turn positive and the European equities regain the bid tone.

USD/JPY Technical Levels

A break below 109.24 (4h 50-MA) could yield a sell-off to 108.46 (Feb. 5 low) and 108.28 (Jan. 26 low). On the higher side, breach of resistance at 109.71 (overnight high) would expose 109.84 (4h 100-MA) and 110.00 (psychological levels).