The Dollar/Yen recovered yesterday alongside the US equities and government bond yields, as the benchmark yield for the 10-year note recovered up to 2.42%, following comments from US President Trump, who said that a deal with China, if it happens, will be announced within the next month. Traders became hopeful and optimistic once again for a potential deal between the 2 economic giants. Japanese data released at the beginning of the day was mixed and didn’t have any impact on price. Today traders will keep an eye on any trade news to get a clue of the next possible price destination.
The USD/JPY closed above the channel yesterday, but just below the 109.70 resistance level. Bulls need to break above that level to confirm further gains on this pair, possibly towards 110, which is a major resistance level. However, if the bears manage to get back into the channel by breaking below 109.40, then they will regain control and target the recent lows, 109.
Support: 109 / 108.50
Resistance: 109.7 / 110