The Dollar/Yen continues falling as US equities and the 10-year treasury yield are reporting losses due to lingering trade tensions. Trump reiterated yesterday that he will increase tariffs on $300 billion worth of exports if US-China won’t reach a deal at G-20. Market sentiment remains bearish and traders on their edge watching closely the psychological support of 108.00. Lately, the markets have become very news sensitive, if the bearish tone resumes today, we will likely see Yen getting stronger and the market possibly retesting the recent lows. However, the slightest uplifting news will push prices higher to retest the major resistance level 108.75-80.
The battle between the bulls and the bears continues, as the Dollar bulls have attempted to break above 108.50 yesterday, multiple times, but failed. The bears on the other hand, tried to gain control by breaking below 108.20, but failed again. A break to either side will give a short-term victory to one of the sides and will push the price to their favor until the next resistance/support level.
Support: 108.20 / 107.77
Resistance: 108.50 / 108.75-80