The Yen continued to register gains on Friday for the fourth consecutive day as risk sentiment has improved in the financial markets since Trump delayed for 6 months the auto tariffs set on Europe and also by removing Steel, Aluminum tariffs on Canada and Mexico. Equities have been in a recovery mode ever since then and the Dollar/Yen is following suite. However, traders are still very cautious and treading lightly as the trade war with China still hasn’t been resolved and one tweet from President Trump can turn the market sentiment upside down.
The Dollar/Yen broke out from a key resistance level on Friday, 110, and continued its bullish move towards another major resistance, 110.30. Price is currently trading above the 50-day moving average, indicating that the bulls have regained short-term momentum. The buyers will attempt to break above 110.30 to potentially retest the next major resistance level 111. However, if the bears will be able to push price below 109.70, they will regain full control.
Support: 110 / 109.70
Resistance: 110.30 / 111.00