Trading on the Yen was choppy yesterday with light volume as Japan celebrates a local holiday, which kept macroeconomic calendars empty. Today, however, due to the US/China trade talks producing so little, perhaps the market is ready for a bit of a pullback after last week's run up fueled by trade war optimistic headlines.
From a technical perspective, the bullish momentum seems to have faded a bit, although bulls keep charging at the resistance level (R1) and the 50-period moving average. A slight pullback is expected after failing to close above the key important resistance level, however the short and medium term trends both look bullish, and therefore buying might accelerate should prices move above the 108.50 to 108.70 zone where further buy stops could get activated.
Support: 108 / 107.65
Resistance: 108.45 / 108.80