The Dollar/Yen remains indecisive partially due to disappointing Japanese data, which showed economic slowdown continues to deepen, and in part due to BOJ’s Governor Kuroda commented on the economic outlook speaking at a seminar, highlighting the large downside risks due to the uncertainty about the global economic outlook. The lack of liquidity also played a major part to keep the pair relatively unchanged, as the US and UK markets were closed for holiday. Today, traders will keep an eye on Equities as they will likely act as a leading indicator for this pair’s next possible trajectory.
The Dollar/Yen trades over/under 109.50 as the bulls and bears are fighting for their place. If the buyers successfully break above yesterday’s high 109.62, then they could find momentum to retest 109.75 and possible the 50-day moving average (blue line). However, if the bears break below 109.43, then they will likely regain full control and push the price lower towards 109.50 and possibly 109, the monthly low.
Support: 109.50 / 109
Resistance: 109.75 / 110.00