The Dollar/Yen ranges around the 200-period moving average as traders fail to reach a consensus on a directional bias for the pair. For now, the pair’s bias remains unclear until prices move in a direction above or below the key 200-period moving average. This indecision in the market exists as investors await tomorrow’s US NFP report, while also awaiting to see how the US stock market will perform today after closing yesterday due to a local holiday. For today, the performance of US equities will be the key driver of the pair as it helps in gauging sentiment in the market. Additionally, investors need to also keep an eye on the release of the US ISM Non-Manufacturing PMI figure as it will give the market an idea about what they should expect in tomorrow’s NFP report.
The pair's future direction will only be determined after prices break either above or below the 200-period moving average. The break below the 200 period moving average will pave the way for a drop towards the 112.50 support level, while the break above the 200 period moving average will pave the way for a rise towards the 113.68 resistance level.
Support: 112.84/ 112.50
Resistance: 113.32 / 113.68