The US Dollar was edging lower along the 100-hour SMA on Tuesday. The Yen, however, managed to strengthen 45 pips during the Asian session, as risk-averse traders responded negatively to the resignation of Trump’s economic advisor Gary Cohn that have heightened concerns over a trade war.
The pair has since remained stable, lingering slightly above the 2017 low of 105.35. If looking at today’s session, some downside potential is still apparent for the pair. Even if the aforementioned low is breached, the Greenback should be stopped by a downward-sloping trend-line near 105.10.
In terms of resistance, a possible near-term target is the 200-hour SMA, the weekly PP and the upper boundary of a three-month channel circa 106.25.