The Dollar/Yen closed positively yesterday as the market was in a risk-on mood following the weekend news indicating China and the US will resume trade talks. Equities soared worldwide, although US indexes gave back most of their intraday gains ahead of the close. Treasury yields ticked higher, adding to the bullish case of the pair, alongside a better than expected US ISM Manufacturing PMI numbers. However, earlier this morning, US proposed $4 billion in potential additional tariffs on EU over aircraft subsidies, which dented the market sentiment as traders rushed back to the Yen after they realized that they are not in the clear yet.
The Dollar/Yen closed positively yesterday but remains in the bears territory as long as price trades below 109. The sellers will attempt to regain control in today’s session by first breaking below 108.20 and yesterday’s lows to close the gap by retesting 107.85. However, the bulls will try to continue with the recent momentum and retest 108.7 which is also the 200-day moving average.
Support: 108.2 / 107.85 / 107.50
Resistance: 108.70 / 109