The Dollar was favored against the Yen during yesterday’s session as the market’s positive mood sent US Treasury yields to fresh two-week highs, weighing on the safe havens such as gold and Yen. However, today’s sentiment could weigh on the greenback, if the S&P remains in the negative territory, after the index erased all of its yesterday’s gains and closed negatively, despite US Secretary of Treasury Mnuchin’s attempt to pump the market up with positive notes ahead of trade talks. This could be a sign that market participants are starting to get tired of ‘talks’ and they are looking for a real and tangible deal to keep the optimism going.
The Dollar bulls broke above 107.20 yesterday by reaching as high as 107.50. The buyers are back in control as they are setting up a new upward trend after being subdued for one full month in a consolidation zone. Today the bulls will attempt to break above 107.50 for an attempt to retest 107.75. If however, the bears were able to break below 107.20, then this upward move will temporarily put on hold and a deeper pullback could be on the cards.
Support: 107.20 / 107
Resistance: 107.50 / 107.75