The Dollar/Yen had a calm session yesterday as the US market was closed on account of the 4th of July. Equities remained at all-time-highs even after news reports from China saying that they might not respect recently agreed trade truce unless the US removes the imposed tariffs and the bans off Huawei. Today’s Non-farm Payrolls event could be decisive, as a weak data could confirm a Fed rate cut in July’s FOMC. If that happens, equities will soar to new all-time-highs and the Yen will probably get crushed as risk-on sentiment will be back in the markets.
The Dollar/Yen found support around 107.70s and the 50-day moving average, and now it looks like momentum has been picked up and the bulls are targeting 108.15 next. If the bullish momentum persists, we will likely see a break above that resistance level, pushing price higher towards 108.50, where the 200-day moving average is also located. However, the bears will need 107.50 to regain control.
Support: 107.85 / 107.50
Resistance: 108.15 / 108.50