The US Dollar recovered amid a better market mood on Friday as Trump mentioned that the phase one of the US-China trade deal could be signed during this month. However, concerns about the US economic health kept the upside in check, adding pressure on the greenback, already hurt by the latest Federal Reserve decision on monetary policy. Nonetheless, US Equities have been soaring and printing new all-time highs mostly on the trade deal optimism. Therefore, the Dollar-Yen pair will likely follow the equities’ footsteps today if the bullish sentiment prevails.
The Dollar-Yen has bounced from the 200-day moving average and a critical technical point, which may offer some clues as to the likely direction ahead. The bulls will probably extend their gains towards 108.50 the 50-day moving average if 108.25 is broken.
Support: 107.90 / 107.65
Resistance: 108.25/ 108.50