The Dollar/Yen neared 111.00 as US equities fell, following FED’s decision not to cut rates. Investors were pricing in a possible rate cut, but Chairman Powell disappointed the market participants and kept rates unchanged. The pair, however, bounced from the lows to close at 111.37 as Powell’s confidence revived Dollar longs. Japan’s macroeconomic calendar remains empty today as the country is closed for a holiday. Traders will be focusing on equities to see if yesterday’s sell-off could possibly continue today. If it does, then the Dollar/Yen will be vulnerable for more downside risk.
The Dollar/Yen fell towards 111.00 but the bulls showed up quickly to take price higher and settle around 111.40 for the day. Currently price is trading around a very important resistance area, 111.50-60 (R1), just below the 50-day moving average. A break above this level could find more buyers to push price higher towards 111.80 (R1) or even more. But a failure to the upside could pull the price back towards 111.25 (S1) and 111 (S2).
Support: 111.25 / 111 / 110.85
Resistance: 111.50-60 / 111.80