Against the yen, the dollar was seen likely to be supported at the psychologically key 100 yen level, although a breach of that level could open the way for the dollar to test support at 99, a low marked in the aftermath of the UK’s “Brexit” vote.
The dollar will probably trade in a 100 yen to 102 yen range in the near term, said Stephen Innes, a senior trader for FX broker OANDA in Singapore.
Some traders seem to be looking to take short positions in the dollar if it rises towards 102 yen, Innes said, adding that dollar-selling could also gain steam if the greenback were to fall below 100 yen.
“If we break below the figure it’s just going to be like a free-for-all I would imagine down to the post-Brexit level,” Innes said.
