The Dollar dropped against the anti-risk Yen on Friday after reports that the Trump administration is blocking all US investments in China. However, on Saturday, Treasury spokesperson Monica Crowley denied Friday’s headlines, indicating, “The administration is not contemplating blocking Chinese companies from listing shares on US stock exchanges at this time.” The news would likely bring back the risk-on sentiment in today’s session. Equities and US Treasuries bounced earlier today at the open, if those gains hold, the Dollar will likely follow its bullish trajectory towards 108.50.
The Dollar-Yen broke above the 50-day moving average, previous resistance, as price is currently retesting it as a new support. If the bulls were able to hold this position, then a push towards 108.18 in today’s session will be very likely. However, a break below 107.80, the bears will take over and push price towards 107.45.
Support: 107.80 / 107.45
Resistance: 108.20 / 108.50