The Dollar/Yen lost most of its gains yesterday and closed relatively unchanged as equities fell throughout the US trading session after President Trump tweeted: “Good day in the stock market.” Ironically, market sentiment became bearish after the tweet.. Traders rushed to the anti-risk Yen after realizing that US-China trade disputes are far from over, especially when Trump said that China wants to make a deal very badly, but it’s him who’s holding up the trade deal. Today, the bearish sentiment is likely to continue as market participants will probably resume to favor the Yen over the Dollar.
The Dollar bulls attempted to break above the multi-year trend line resistance, 108.70s, but the bears rejected price confirming that level as a new major resistance. The sellers will try to retest the long-awaited yearly low 107.77 in today’s session. The buyers will attempt to hold off the recent bearish momentum and protect 108.50 and 107.77 with everything they have got.
Support: 108.50 / 107.770
Resistance: 108.70-80 / 109