The anti-risk Yen edged lower yesterday as US Equities and Treasury yields jumped to new weekly highs on news US President Trump will meet Chinese Vice Premier Liu today in another attempt to reach a trade deal. The Dollar rebounded further after a report that the U.S. was considering an agreement to suspend next week’s tariff increase in exchange for a currency pact. The potential trade deal is currently dominating the market sentiment. If the headlines stay positive, then we will likely see more strength on the US Dollar in today’s session. However, a slight change of tone, traders will rush into the Japanese Yen, pushing the pair down.
The Dollar bulls reached to a very important resistance level, 108.05. A break above this line will probably push price higher towards the monthly high, 108.45. The bears, however, will attempt to pull the price back towards the immediate support level, 107.65, in order to show some resiliency.
Support: 107.65 / 107.30
Resistance: 108.05 / 108.45