Yen started the European trading session on strong foot today, after the pair yesterday hit the weekly high at 108.50. As of writing the pair is trading at 108.14 very close to daily low as traders fishing for safe heaven assets. We are waiting for comments from The Bank of Japan (BOJ) Governor Kuroda, scheduled for key note address on “How Finance and ICT Combine: a Historical View on the Future” at the Institute of International Finance (IIF) Spring Membership Meeting for clues on Japanese economy and trade war tensions.
The pair has breached all key moving averages since the start of May as trade war between China and USA escalates, and never came even close, any attempts to the upside met strong offers. Immediate support for the pair stands at 108 round figure while solid support will be met at yearly low down to 107.60. On the upside resistance for today stands at 108.23 the 100 hour moving average while key resistance will be met at 108.45 the high from Asian session. All in all the Bearish momentum is still intact and any strong gains for the pair is a selling opportunity.