The Dollar fell against the Yen after a report suggesting that high-level negotiations including Chinese Vice-Premier Liu He would be cut to just one day. Equities struggled with this news as well, as investors feared they could hope for little from this week’s much-anticipated gathering. However, a Bloomberg report suggesting that the US was considering offering Beijing a currency pact that could decrease tariffs if agreed helped turn things around for the pair and stocks. Today’s Core CPI data could impact the pair in the short-term, however traders are aware that headlines related to the trade talks are going to be the main market driver as this week bows out.
The Dollar-Yen price action suggests no apparent bias as bulls and bears lacked any meaningful follow through. The buyers need to break above 107.70 to confirm their next domination by possibly retesting the 108-resistance level. The bears on the other hand, must take out the 107 support level to extend their losses towards 106.50.
Support: 107.30 / 107
Resistance: 107.70 / 108