The anti-risk Yen surged against the Dollar after today’s BOJ decision as they kept its policy on hold, a decision that put the central bank out of step with the US Fed and the ECB. Yesterday’s Fed hawkish announcement initially lifted equities but earlier this morning the stock market reversed most of its gains, weighing also on the pair. If equities will not be able to recover in today’s session, then the Yen will strengthen even more pushing the pair below the 50-day moving average.
The Dollar bulls faced by a strong resistance level at 108.50, as the bears took over by pushing price below the trend line and the 108 support level, until price found support at the 50-day moving average 107.85. If the bulls lose this support, then the bears will most probably take back control by pushing price towards 107.50.
Support: 107.85 / 107.50
Resistance: 108.30 / 108.50