The anti-risk Japanese Yen is losing ground, pushing the Dollar/Yen higher after reports that the US and China have agreed to another truce in their trade war. The world's two biggest economies have agreed to a tentative truce ahead of the G-20 meeting, paving way for a fresh round of negotiations. Neither the White House nor the Office of the US Trade Representative has commented on the reports. However, equities and the greenback have picked up a bid in response to the trade news. Looking forward, market participants may avoid being overoptimistic this time as the previous talks had collapsed suddenly and shocked the market.
The Dollar/Yen broke above multiple resistance levels and the 50-day moving average during yesterday’s session. Currently, price is sitting just below 108.20, a break above it might extend the gains towards 108.70-80s and retest the 200-day moving average. However, a failure to break to the upside, the bears will likely take over and push price lower 107.85 and possibly 107.50.
Support: 107.85 / 107.50
Resistance: 108.20 / 108.70-80