The Dollar-yen started to rollover on Friday after last week's report suggesting that the subject of rolling back tariffs is facing fierce internal opposition in the White House, the fact that the US President Donald Trump also denied any such decision, fueled some skepticism and was seen weighing on investors' risk appetite. Meanwhile, the US Dollar surged near multi-week tops, supported by the recent upsurge in the US Treasury bond yields, but did little to lend any support or stall the pair's intraday slide. However, absent relevant market-moving economic releases might help limit any further downside, at least for the time being.
The Dollar-Yen is losing momentum as the bears are currently attempting to break below the rising short-term trend. Any break below 108.90 will extend the losses towards the 50-day moving average and possibly 108.65. On the other hand, if the bulls were able to hold 108.90 and gather enough momentum, we could see another upsurge on this pair, possibly taking price to retest the 109.50 resistance level.
Support: 108.9 / 108.65
Resistance: 109.20/ 109.50