July 25, 2019 | SQUARED DIRECT - The Dollar/Yen closed relatively unchanged in a very tight range as traders are currently in a cautious mode ahead of central banks’ announcements, starting with the ECB today and the Fed next week.
The yield on the benchmark 10-year note remained stable throughout the session around 2.05%. Interestingly, US equities, specifically the S&P 500, surged towards the all-time-highs yesterday and earlier this morning printed new highs. This could be a leading indicator that investors are going into a risk-on mode, which could favor the Dollar over the anti-risk Yen.
USDJPY technical outlook
The US Dollar remains strong above the 50 and the 200-day moving averages and the 108 support as the bulls are once again looking to challenge the 108.30 resistance level. If broken, it could open doors for further bullish momentum taking the price to retest 108.60. The bears, on the other hand, need to take out the 108 support level to regain short-term control and possibly retest 107.80.
Support: 108 / 107.80
Resistance: 108.30 / 108.60
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