The Dollar bulls attempted to break above the 108.75-80 resistance level after the US released a better-than-expected Q2 GDP numbers, which hinted a less aggressive stance from the US Fed, but the buyers couldn’t find enough momentum to push prices higher. Earlier this morning, Japan released June’s Retail Sales beating estimates, which pushed the Dollar temporarily lower but the bulls quickly recovered keeping the pressure to the upside, as traders remain optimistic of the new rounds of trade talks between the US and China. The bullish Dollar narrative will remain the highlight of this week as the Fed is expected to be less dovish during Wednesday’s FOMC meeting.
The Yen bulls are showing some resilience around the key resistance area 108.75-80. The Dollar bulls will likely challenge to break it during today’s session as they have failed to do so during Friday. IF succeeded, the 109-109.20 major resistance area will be exposed, but the bulls will definitely have a hard time breaking above that level. The bears on the other hand, have a multiple support levels to break to regain control (108.30 level, the 50 and the 200-day moving averages).
Support: 108.45 / 108.30
Resistance: 108.75 / 109