The pair is likely to trade in a tight range today in Asia, with investors refraining from taking fresh positions before the Bank of Japan holds a two-day policy board meeting on Wednesday and Thursday. Despite decent economic data of late, there is lingering speculation that the BOJ may consider additional easing to help ease upward pressure on the yen. Investors will also watch closely movements of yields on Treasury notes. The yield on the 10-year note touched 1.4964%, the first time that it has fallen below 1.5% since June 4. It hit an all-time low of 1.44% on June 1. The dollar will face resistance initially at Y79.61 and then at Y79.80, while it is expected to meet support initially at Y79.23 and then at Y79.03. The dollar moved from Y79.21 to Y79.60 on Tuesday.
EasyForexNews Research Team