The Dollar/Yen continues to trade above the 13-period moving average as investors continue to digest Wednesday's inflation projection downgrade. On Wednesday, the Bank of Japan announced a downward revision on its Japanese inflation projections which led to a drop in the Japanese Yen and a rise in the USD/JPY pair. For today, investors need to monitor what the ECB will have to say about the European and global economy as their comments will play a part in altering investor sentiment and affect demand around safe haven assets and currencies such as the Yen. Additionally, traders need to monitor the release of the US Manufacturing PMI figure as US economic data will affect the pair from the greenback's side.
The Dollar/Yen remains to trade above the 13-period moving average signaling short term bullish momentum and a possible rise towards the next resistance level at 110.10. The 110.10 resistance level coincides with the 200-period moving average (purple).
Support: 108.93 / 108.59
Resistance: 109.53 / 110.10