The Dollar/Yen is struggling for direction, as the Dollar remains firm in what appears to be a flight to the safety despite an expected 25bp rate cut from the FOMC at its September meeting amid escalating trade tensions and further cracks in global growth. Besides the trade war and Hong Kong risks, Brexit has come back to the fore with Tory rebels seeking to introduce legislation to force a delay of the Brexit deadline until end-January. PM Johnson is to deliver a key speech to Parliament today following his statement to the public overnight where he stressed that there will be no delays to Brexit and that a general election is unlikely but said he will call for 14 October if he loses the Brexit vote today in Parliament. The pair will likely remain trading within the same zone with no strong bias either way, until further clarity of these current geopolitical problems.
The pair remained relatively unchanged during Monday’s session as traders are waiting for a further clarity in bias. The sellers will be attempting to push price back towards the bottom of the channel, 105, and the bulls will try to retest the overhead resistance area, 106.70. Price will remain with no apparent bias as long as the pair is trading between 106.70 and 105. A breakout from these levels will likely establish a new trend in the market.
Support: 105.70 / 105
Resistance: 106.25 / 106.70