The Dollar/Yen closed slightly negative yesterday as financial markets are getting ready for the G20 summit. The main focus will be on President Trump’s meeting with his counterpart Xi, where a possible trade deal might finally occur and change the overall market sentiment. But also the meeting between Trump and Erdogan could influence Monday’s opening. In case of a no trade deal between the US and China, the Yen will likely pick up steam once again and continue the pair’s overall bearish trend and possibly break to new lows.
The Dollar/Yen couldn’t break above key resistance level, 108.20, and in turn dropped below 107.85 and currently finding support at the 50-day moving average. A break below 107.50 would accelerate further losses towards 107.05. However, if the bulls will be able to take out 107.85 once again, then we will likely see a push towards 108.20 for a retest.
Support: 107.50 / 107.05
Resistance: 107.85 / 108.20