The Yen appreciated during yesterday’s session amid safe-haven demand following softer than expected Chinese growth data. The Yen was also supported by broad dollar’s weakness, as traders dumped the greenback ahead of today’s US Federal Reserve’s decision. Despite US equities printing new all-time-highs, the demand on Yen didn’t stop. Traders are eagerly waiting Chairman Powell’s statement regarding interest rates to establish the appropriate market sentiment. The Japanese macroeconomic calendar have nothing to offer today.
The Dollar/Yen closed below a key support, 111.50 and currently price is retesting that broken support as a new potential resistance. The bulls are starting to lose momentum, a break below the 200-day moving average (yellow line) and the 111.25 (S1) could further accelerate losses towards 111 (S2). However, the Dollar bulls will regain control if they successfully push price back above 111.50.
Support: 111.25 / 111 / 110.85
Resistance: 111.50 / 111.80