The Dollar continued to find some modest bid against the Japanese Yen, as action around the pair was dictated by trade-related headlines. China will not include commitments on reforming Chinese industrial policy or government subsidies in its offer to the US when they met this week. Nevertheless, the Chinese Commerce Ministry was on the wires saying that China is ready to do a deal on the parts of the negotiations both sides agree upon. The headline fueled high-yielding assets, as traders dumped gold and the Japanese currency. In addition, US President Trump signed a trade deal with Japan ahead of the US close, which kept the sentiment positive heading into a new trading day. The greenback will likely continue to be the prefered currency throughout this week if the sentiment remains the same.
The Dollar bulls broke above 107.22 resistance level, after having formed a strong base above 106.50. Price found some resistance just below the 50-day moving average and the 107.46 level. The bulls will attempt to gather momentum and extend their gains above this area, possibly retesting 107.85. The sellers on the other hand, need to break below 106.50 to halt this current bullish momentum.
Support: 107.22 / 107
Resistance: 107.46 / 107.85