The Dollar continued to grind higher yesterday after US President Trump said that they are “ahead of schedule” with finalizing phase one of the trade agreement with China, further fueling the positive market sentiment. US Treasury yields advanced, with the benchmark yield on the 10-year Treasury note reached as high as 1.86%, along with Equities shooting up to new record highs. This bullish mood on this pair will likely resume this week until a major headline changes the sentiment.
The Dollar-Yen broke above the recent swing high 108.90, reaching as high as 109.05, as the bulls are looking to continue to grind higher. If 109.05 resistance is taken out then a 109.30 retest will be a likely scenario. However, if the bears were able to break below 108.90 then 108.70 will be exposed for a retest.
Support: 108.90 / 108.70
Resistance: 109.05 / 109.30