The Dollar/Yen drops during Thursday trading but recovers during today’s early trading. The Yen gained on Thursday as U.S equities sold off due to growing political uncertainty around the globe. However, U.S stock market futures are pointing towards a recovery this morning which led the Dollar/Yen to rise back up. The correlation between U.S equities and the Yen pair has been evident this week, hence, it is crucial for Dollar/Yen traders to monitor U.S equities. For today, traders need to monitor the release of the U.S Existing Home Sales figures as it will play a part in the greenback’s intraday movement.
The pair is currently attempting to break above the 112.53 minor resistance level which coincides with both the 50-period moving average and the 200-period moving average. This is a crucial level given that a break higher will confirm the shift in the general trend bias of the pair. A failure to break above this level will mean that the bias remains bearish and the pair will continue on its downward path.
Support: 111.63 111.37
Resistance: 112.53 112.93