The Dollar/Yen recovers back above 113.00 following a recovery in both the US Dollar and US stock indices. The greenback recovered as bears began taking profit after last week’s drop in the US currency. The Yen lost some ground during yesterday’s trading due to a recovery in US stocks which moved investors away from low yielding, safe haven assets and currencies such as the Yen.
The pair rises back above all the three major moving averages indicating a possible shift in the long term bias of the pair. A break above the 113.38 resistance will confirm that investors have turned bullish on the pair, paving the way for a rise towards the 113.85 resistance level. A break below the three major moving averages and the 112.89 support will signal that the pair's bias will remain bearish exposing the 112.50 support level.
Support: 112.89/ 112.50
Resistance: 113.38 / 113.85