The Dollar/Yen rises slightly higher as global equities continue to rise. As equities rise, investors are demanding less and less safe haven assets and currencies such as the Yen pushing the Dollar/Yen pair higher. For now, equities around the globe are rising as investors price in the possibility that the US and China trade tensions might end or at least ease out significantly. In addition to the performance of global stocks, Dollar/Yen traders need to monitor changes in US Treasury yields as they will affect the pair from the greenback’s side.
Momentum remains bullish for the Dollar/Yen pair as prices continue to trade above all the three major moving averages. Most recently, the 50-period moving average broke above the 200-period moving average giving further evidence that momentum is strongly bullish. The recent break above the 113.38 resistance level exposes the next key resistance level at 113.85.
Support: 112.89/ 112.50
Resistance: 113.38 / 113.85