The Japanese yen pushed higher during yesterday’s early session after concerns about Brexit developments favored the safe-haven currency. However, the dismal mood was short-lived as by the end of the day, equities closed higher with modest daily gains, while government bond yields ticked marginally higher, backing the pair’s recovery. Today, the same will likely repeat if the US-China trade tensions will not escalate and UK parliament agree to the Brexit timetable.
The Dollar-Yen broke out from the Bullish Flag, indicating that the bulls are looking to gather momentum and retest the recent highs 108.80 and possibly further in today’s session. The bears on the other hand, need to break below the 50-day moving average to regain possession.
Support: 108.45 / 108.10
Resistance: 108.80 / 109.10