The Japanese yen inched higher after a drop in July’s unemployment rate. The pair is in a narrowing trading range following its bounce off the demand zone at 109.10.
Sentiment remains optimistic as long as price action stays above this critical level.
However, the bulls may encounter selling pressure at 110.50 from the August sell-off. A bullish breakout would attract momentum buyers and extend the rally to above 111.00.
On the downside, a break below 109.50 would lead to a retest of buyers’ resolve.