The anti-risk Yen appreciated yesterday as traders rushed to safe-haven assets after a Bloomberg report stated that the Chinese officials are casting doubts about reaching a comprehensive long-term trade deal with the U.S. even as the two sides get close to signing a “phase one” agreement. The news has unnerved markets, anticipating further escalation of concerns to come. Subsequently, US Treasury yields fell along with Equities, putting additional pressure on the Dollar-Yen. The Dollar will likely remain under pressure in today’s session as the NFP is expected to print weaker this month.
The Dollar-Yen fell and broke below the 200-day moving average, however price found support for now at the long-term trend line. The bears will extend their gains towards 107.65, if they find enough momentum to break below the trend line support along with the 107.90 level. The bulls on the other hand, will need to push price above 108.25 to normalize the sentiment once again.
Support: 107.90 / 107.65
Resistance: 108.25/ 108.50