The Dollar/Yen bounced yesterday following US equities and treasury yields after news that US President Trump will be meeting with the Chinese President Xi-Jinping at the G-20 summit next week. Trump tweeted that he had a ‘very good telephone conversation with President Xi’, adding that their respective teams will begin talks before their meeting. The pair, however, remains in a no man’s land as market participants are eagerly waiting today’s FOMC and interest rates decision for much more clarity.
The Dollar/Yen peaked at 108.67 yesterday after meeting sellers, once again, just below the critical resistance area, ending the day little changed around 108.40. The pair has been stuck in consolidation since the beginning of June, but today’s FOMC catalyst could lead to a breakout to either side. The bulls need to break above 108.80 to take back control and the bears will need to take out the yearly low 107.85, to open doors for further downside move.
Support: 108.20 / 107.85 / 107.5
Resistance: 108.50 / 108.8 / 109.20