The Dollar/Yen traded in the same range yesterday parallel to the equities, after another weak Japanese data and lackluster demand for the US Dollar, as US CPI data missed expectations. Earlier today, Japan released yet another weak data as Core Machinery Orders widely missed the forecast; -5.4% vs -1.5% MoM and -2.9% vs -2.3% YoY. This weakened the Yen despite better than expected PPI; 0.8% vs 0.7% YoY. Looking ahead, we still have February Tertiary Industry index, estimated up by 0.5%. If missed, it could add more selling pressure on the Yen.
The USD/JPY traded between 111.10 (S1) and 111.50 (R1) during yesterday’s session. Waiting for a break to either side to confirm the next possible destination. Price action looks weak so far, which gives the advantage to the bears. A break below 111.10 (S1) will likely accelerate selling to retest the 110.77 (S2) level.
Support: 111.10 / 110.77
Resistance: 111.50 / 112