The Dollar/Yen rises slightly higher as market sentiment improves decreasing the demand for safe haven currencies such as the Yen. Global equities are on the rise today as China announced that they will be holding trade talks with the US next week. The recovery in global stocks gives a clear indication of the improved risk appetite which means that the Japanese Yen will be in lower demand. For today, market participants will focus on the release of the US NFP report which will drive the pair from the US Dollar’s side.
The Dollar/Yen rises towards the 13-period moving average after improved market sentiment. However, as we can see on the chart below prices failed to break above the 13-period moving average indicating that traders are not fully committed yet to the recovery in the Dollar/Yen. Before pushing the pair higher, traders are awaiting the NFP report set to be released today. A positive report will attract more traders into buying the Dollar/Yen pair pushing prices above the 13-period moving average and up towards 109.10. On the other hand, a negative report will drive the pair below the 107.45 support.
Support: 107.45 / 106.71
Resistance: 108.30 / 109.10