The anti-risk Yen was dumped during yesterday’s session after the US decided to ease some Huawei restrictions putting a temporary pause on the trade war fears. Furthermore, the Japanese data released earlier was bearish on the Yen, giving the Dollar a further boost. US equities also took a breather after this recent news, however we should keep in mind that the trade war isn’t completely done and the risk is still there, and at any moment one negative development can tilt the whole market sentiment to the bears’ side once again.
The Dollar/Yen broke above a key important resistance yesterday, 110.30, as the bulls are slowing regaining momentum. The buyers are now eyeing to retest 111, which coincides with the 200-day moving average. A break above that level could change the whole market sentiment and possibly change the trend. But as long as price is trading below that key level, the bias will remain with the bears. The sellers will try to break back below 110.30 in today’s session in an attempt to regain momentum and retest 110.
Support: 110.30 / 110
Resistance: 110.60 / 111.00