The Japanese Yen got dumped on risk-on sentiment as the pair has reached 108.89 yesterday, a level last seen early August. Renewed hopes that the UK and the EU will reach a deal on Brexit this week boosted the market’s sentiment. Meanwhile, the Chinese Foreign Ministry said that the country will speed up orders for American agricultural products, adding that both countries are “on the same page and have no difference in the stance on reaching a trade deal,” adding to the positive sentiment. US Treasury yields rose, with the benchmark 10-year Treasury yield hitting 1.77%, and US Equities surged to fresh monthly highs. The Bullish sentiment will likely resume in today’s session if a negative headline does not distort the market sentiment.
The Dollar bulls attempted to break above 108.80 yesterday but the bears pushed price back below it for the time being. The buyers however, have not given up yet, as they are gathering momentum just below the resistance to break higher possibly extending their gains towards 109.10. The bears need to push below 108.45 to break the recent uptrend and regain control.
Support: 108.45 / 108.10
Resistance: 108.80 / 109.10