The Dollar/Yen continued to march upwards as global equity markets remained strong. The Yen was also under pressure after Average Cash Earnings and Household Spending missed the market forecasts, further signs of economic slowdown. Today, if the US employment data impresses the market, it could send the pair towards and possibly above 112.00.
The USD/JPY broke above the 111.50 key resistance area until price found another resistance level at 111.75 (R1). A pull back and a retest of 111.50 is expected after this move to confirm the break, before continuing the bullish momentum towards 111.9 (R2) and possibly further. However, if 111.50 won’t act as the new support, then price continue falling towards 111.25 (S2).
Support: 111.50 / 111.25
Resistance: 111.75 / 111.9 / 112.14