The Dollar/Yen closed positively on Wednesday as Equities stabilized a bit after Fed’s speech regarding the monetary policy. Earlier this morning, the US Dollar couldn’t sustain its gains above 111.10 once again and lost a bit of steam as China's manufacturing Purchasing Managers' Index for February came in at 49.2 missing the forecast of 49.5 by a narrow margin. The third straight below 50 print indicates a sustained deterioration in the activity despite the government's stimulus efforts. Therefore, today equities could come under pressure, in turn the USD/JPY’s outlook could weigh on the bear’s side.
The Dollar/Yen found resistance at 111.10 (R1) for the third consecutive day. If this level continues to hold, then a pullback towards 110 (S1) will become highly likely. Traders are waiting for a break to either side to confirm the next potential targets.
Support: 110 / 109.60
Resistance: 111.1 / 111.40