The Dollar jumped against the Yen as US equities finally broke out from the August consolidation zone after US and China agreed to meet for trade negotiations in early October. Limited demand for the dollar, however, kept the upside in check, as investors are still not fully enthusiast with the recent trade development. That being said, the Yen is set to weaken during today’s session as the sentiment has probably turned to positive with the government bond yields recovering, UK Parliament blocking PM Johnson from crashing out of the Union without a deal and a new coalition government in Italy could soon be agreed.
The Dollar bulls retested the overhead resistance level, 106.70, of this recent consolidation zone, which is also the 200-day moving average, but could not find the necessary momentum to break above it, yet. If the bulls will able to take out that level, a retest of 107.05 will be on the cards for today’s session. However, any loss in momentum will keep price trading in the same range with no clear bias.
Support: 106.25 / 105.70
Resistance: 106.70 / 107.05