The Dollar/Yen rises slightly higher after a strengthening US Dollar. The greenback rose yesterday after the US Federal Reserve increased US interest rates from 2.25% to 2.50% despite warning of a possible softening in the US economy. On an even more hawkish note, the Federal Reserve claimed that they are planning to raise interest rates two more time in 2019. For today, the pair will continue be driven by investors digesting yesterday's FOMC news. Moreover, the pair will also be driven by performance changes in global equities, since movement in equities dictate some of the movements for the Yen. Basically, a drop in equities means that economic sentiment is low which will drive investors into putting their money in safe haven assets and currencies such as the Yen.
The pair bounces off the 112.18 after a rise in the US Dollar. Following the bounce, the pair rose all the way towards the 13-period moving average. For now, prices are rejecting the break above the 13-period moving average signaling weak buying demand and a possible continuation in the bearish momentum. The general bias for the pair remains bearish given that prices are currently trading below all the three major moving averages. The break above the 13-period moving average might signal a rise towards the next key resistance level at the 50-period moving average. However, a drop below the 112.08 will pave the way for a drop towards 111.65.
Support: 112.08/ 111.65
Resistance: 112.69 / 112.89