As markets continued to react to news from trade wars between the U.S. and other countries, the Dollar rallied against the Japanese Yen during yesterday’s session. During Wednesday’s session we have the Producers Price Index report coming out of Japan which is forecasted to come out at 0.2%. Moreover, there aren’t any reports coming out of the U.S. today but the trade war news coming from the U.S. is enough to impact the price action of the pair.
As we can see during yesterday’s session the U.S. dollar rallied against the Yen. If USD/JPY slips below the 111.10 support it could possibly move to the 110.93 figure. On the other hand, if the pair can break the 111.65 resistance it may continue towards the 112.00 level. We are awaiting the later to happen otherwise Dollar/Yen may be stuck in a range. During today’s session, it seems that the pair may stay in that range where it may start with a bearish move towards the 110.93 area and then gain momentum and take an upward turn in the direction of the 111.65 level.
Support: 111.10 110.93
Resistance: 111.65 112.00