The Dollar/Yen bounced on Thursday tracking the rebound in the US equity futures and Treasury yields amid global risk was cooling off. However, earlier this morning, risk-off sentiment came back after China released its disappointing Manufacturing PMI data sending the pair below the 109 key support. With the ongoing trade concerns and the global economic slowdown, the anti-risk Yen will remain to be favored against the Dollar during today’s session among market participants.
The Dollar/Yen touched the 50-day moving average and reversed hard to break below the 109 key support. The bears are now back in full control as their next target will likely be the multi-year support area 108.50-60. A break below that level would confirm more downside risk for this pair. The bulls on the other hand, will attempt to close the day above 109 to keep their hopes up for a possible rebound.
Support: 108.55 / 108.15
Resistance: 109 / 109.20