The Yen edged higher yesterday following the safe-haven assets ending the day higher amid ruling uncertainty. Concerns about a German recession, Italian political chaos and Brexit back and forth, kept investors on their toes. European equities struggled to remain afloat to eventually close in the negative territory, while Wall Street also lost ground. Government debt yields fell, with the benchmark on the US 10-year Treasury note down to 1.54% intraday. Today’s FOMC minutes will likely give traders a better perspective regarding the future monetary policy, and in turn, it will possibly push the pair out of this current trading range.
The Dollar bulls lost their current momentum during yesterday’s session after price broke below the bullish trend line, which began two weeks ago. However, 106.20 remains well protected by the buyers keeping the battle between the bulls and the bears well balanced. 106.80 and 105.80 are the levels to watch, a break above 106.80 will squeeze the recent shorts and push the price towards 107.20. However, the bulls will admit defeat if price breaks below 105.80, taking price potentially back to the yearly low 105.
Support: 106.20 / 105.80
Resistance: 106.80 / 107.20