The Dollar/Yen is stuck in a low volatility 60 pips range as lack of fresh developments concerning the US-China trade issues and absence of major data confined market moves. India recently became the second Asian country, other than China, to impose tariffs on the US goods. Chinese media kept criticizing the US President Donald Trump and indicate fewer chances of a trade solution from the upcoming G20 meeting between the two leaders. Additionally, Iran is ready to take further steps against the previous nuclear commitments to retaliate the US President’s stand. Political plays concerning the US, China and Iran will likely keep the Japanese Yen favored, as market participants remain on their edge in this highly uncertain environment.
The Dollar/Yen broke above 108.50 on Friday but the bears remain in control as long as price remains below 108.80. A short-term bullish move towards 109 is a likely scenario on this pair if the bulls break above 108.80. However, if the buyers lose momentum and break back below 108.50, then the sellers could take over and push price lower towards 108.20.
Support: 108.50 / 108.20 / 107.85
Resistance: 108.80 / 109