The Dollar/Yen breaks above the 200-period moving average as demand for the greenback increased following the release of the hawkish FOMC meeting minutes. Wednesday’s FOMC minutes showed that the U.S Federal Reserve intends to stick to its monetary policy plan. Furthermore, the meeting minutes showed that the Fed is planning to hike rates beyond the 3% mark in order to have rates within the restrictive area. For today, investors will keep an eye on any developments around the key EU summit with Italy’s budget plan and Brexit being the key talking points. Safe haven demand will be driven based on how EU leaders will address these issues. Additionally, the pair may be driven by the result of the Philadelphia Fed Manufacturing Index.
The pair breaks above the 112.48 resistance which coincides with both the 50-period moving average and the 200-period moving average. The break above these two moving averages is key because they signal a shift in the weekly directional bias of the pair. As bullish momentum continues, the pair is projected to continue rising all the way towards the next significant resistance level around 112.83.
Support: 111.63 111.37
Resistance: 112.48 112.83