The Dollar/Yen closed relatively unchanged on Friday, as the greenback lacked the necessary momentum to break higher due to the disappointing NFP data. However, the risk-on sentiment is back in the marketplace as the 10-year Treasury yields ticked higher, US equities posted solid gains and gold continued falling. Today, the Dollar is expected to be favored against the Yen as the same risk-on sentiment will likely continue unless a tweet or a headline regarding the trade war distorts the market’s narrative, which will take us back to square one.
The Dollar bulls remain in control since last week after they broke above the overhead resistance level, 106.70, and the 200-day moving average. The buyers are currently consolidating just below another major resistance level, 107. A break above it will push the pair towards 107.30. However, if the bulls lose momentum, and price breaks below 106.70, then this recent upward move will be considered a fake-breakout, which will lead price to return and trade in the previous consolidation zone.
Support: 106.70 / 106.25
Resistance: 107.05/ 107.30