The Dollar/Yen hit a fresh year high of 112.17 during yesterday’s session, however the follow-through has been weak, and the pair’s inability to hold above 112.00 is somewhat surprising as China’s first quarter GDP data, March Industrial Production and Retail Sales figure released earlier today was risk-supportive. Looking forward, if the European and US equities ignore the upbeat China data and trade in the red, it will boost demand on the Yen, taking the pair lower to retest the H&S neckline. In the US session, traders will focus on the US trade balance for February, Fed's Bullard speech, and Fed's Beige Book.
The Dollar/Yen has been trading over and under 112 (major resistance level) for the past few days. If the bulls successfully break above this level, then the next major resistance area is 112.30-40. However, failure to hold above 111.80, then price will likely pull back to retest the 111.60 neckline. As long as price remains above 111.60, then the bias will remain with the bulls.
Support: 111.50 / 111.25
Resistance: 112 / 112.30