The Dollar/Yen traded in the same range yesterday and closed slightly higher, despite US equities extending their declines, with the Dow Jones Industrial reaching fresh three-week lows, while US Treasury yields kept recovering. Today, Japan will celebrate the Constitution date, which will keep local markets closed. Traders will mostly be focusing on the US employment report which could have a major impact on the pair in the case the outcome diverges strongly from the market’s expectations.
The Dollar/Yen is trading over/under an important resistance level, 111.50 (R1), which is located in the middle of both the 50 and the 200-day moving averages. Market sentiment is currently neutral as both the bulls and the bears are waiting for a catalyst to break either above or below this level. A break above 111.50 (R1) could send the price higher towards 111.80 (R1). But a lack of bullish momentum could pull the price back towards 111.25 (S1) and 111 (S2).
Support: 111.25 / 111 / 110.85
Resistance: 111.50-60 / 111.80