The Japanese Yen advanced against the US Dollar to levels not seen since January’s flash-crash. The Dollar/Yen continued to fall alongside US Treasury yields following the US Federal Reserve decision to pave the way for a rate cut in the upcoming months. Tensions between the US and Iran was another bearish factor for the Dollar, as traders started to flee to the anti-risk Yen. The pressure remains to the downside, but we could likely see a short-term relief pullback on this pair before continuing to go south and print new lows.
The Dollar/Yen fell yesterday but found support just above 107 support level. A short-term counter move towards 107.50 or even 107.85 is expected, to retest the previous support as the new resistance. If the bears successfully hold those levels, then that would confirm more potential lows coming on this pair. The bulls, on the other hand, need to break above 107.85 to start the bears’ dominance.
Support: 107 / 106.60
Resistance: 107.50 / 107.85