The Dollar/Yen was down for most of the day yesterday, but the US Dollar’s bullish sentiment was much more dominant later in the session, thus the pair ended up relatively unchanged. If the recent US Dollar strength persists across the board, the Dollar/Yen will continue its up trend in the upcoming days. In economic news, we have the Initial Jobless Claims and FOMC Member Clarida speaking, but we don’t expect them to cause much volatility. Our main focus remains on the strength of the US Dollar against other currencies as a guideline for this pair.
The Dollar/Yen traded in a consolidation yesterday and ended up closing unchanged on the day. 110 (S1) is a major resistance and the bulls keep testing it, a close above it will take price to 111.10 (S2). The bulls will remain in control as long as they protect the 109.40-50 support area. If that zone is lost, then a possible retest of 109.1 will be highly likely.
Support: 109.50 / 109.1
Resistance: 110 / 111.10