The Dollar/Yen started to lose some ground yet again as the greenback has come under pressure, possibly due to the widespread expectation of a rate cut announcement on tomorrow’s FOMC meeting. The Fed, however, may not cut interest rates as soon as the market believes but it could lay the groundwork for a rate cut later this year. Moreover, Bank of Japan’s Kuroda showed his concerns regarding the uncertainty in the global economy. His dovish comments, however, have been ignored by the markets as the pair may remain under pressure as traders’ main focus is tomorrow’s FOMC meeting.
The Dollar/Yen retested the 108.70s resistance area but the bulls couldn’t find enough momentum to break above it once again. The bears took back short-term control, and currently attempting to break below 108.20 support. If that level is broken, then we could revisit the yearly low 107.77. The bulls, on the other hand, need to push price back above 108.50 to stay in the fight.
Support: 108.20 / 107.85
Resistance: 108.50 / 108.8