A mixture of stronger equities, soft Japanese data and broad dollar's demand was behind the Dollar/Yen’s weekly advance. Today, the pair gapped up at the Asian market open, following the equities’ footsteps as trade talk optimism is taking over the current market sentiment. Tankan Large Manufacturers (and non-manufacturers) index missed expectations, further denting Yen’s demand. Today, traders will be waiting for the US data and any updates regarding the trade talks to establish the appropriate market sentiment.
The USD/JPY found resistance just below the 111.1 (R1) key level. A successful break above it, could possibly take price higher towards 111.50 (R2). If, however, the bears will be able to protect 111.10 (R1), then price will likely pullback for a 110.85 (S1) retest.
Support: 110.85 / 110.40
Resistance: 111.1 / 111.5