The US Dollar remained steady against the Yen on Tuesday, as it was pressured from both sides by the 100– and 55-hour SMAs. Downside risks prevailed during the Asian session today due to reduced optimism about US-China trade talks. As a result, the pair plunged 36 pips and stopped slightly above the 200-hour SMA near 110.40.
This area is restricted by other important resistance levels, such as the 55-day and 200-period (4H) SMAs, which might hinder bears from making further advances south. Technical indicators are also located in the oversold area.
The upside target should be the combined resistance of the 55– and 100-hour SMAs at 111.00 in case FOMC Meeting Minutes at 1800GMT do not provide additional upside momentum; the ultimate low—110.00 if the 200-hour SMA is breached.
