The Dollar-Yen has retreated from a weekly high of 109.23, extending its intraday losses towards 108.65, following US-China trade news, as according to a senior Trump administration official, the meeting between Trump and Xi Jinping to sign phase one could be delayed until December. The same official said that it is possible that the trade agreement would not be reached, “but a deal is more likely than not.” The news sent US Equities and Treasury Yields lower and safe-havens up, although gains were modest, which could be a sign that the bulls are already dismissing the news and looking to add more positions on this pullback.
The Dollar-Yen pulled back yesterday, found support at the 50-day moving average and today price bounced strongly signaling a possible continuation to move higher. The bulls are looking to retest 109.29 and possibly break to the upside in an attempt to squeeze the shorts.
Support: 108.70 / 108.50
Resistance: 108.90/ 109.29