The USD/JPY pair peaked this Tuesday at 112.13, a fresh yearly high, after an impressive US ISM Non-Manufacturing PMI and Japan’s February Nikkei Services PMI. The pair, however, was unable to hold on to its gains and reversed strongly below the 112 figure. Bulls' conviction was dented by the mixed tone of equities worldwide, as traders weighed Chinese soft data and the country's economic contraction. Today, traders will remain focused on the equities as the leading indicator for this pair.
The Dollar/Yen attempted to break above 112 (R1) yesterday, but price failed to find momentum and reversed back towards 111.70 (S1). Traders are currently in a state of confusion between those two important levels 112 and 111.70. A break above or below these levels will likely confirm the next possible destination.
Support: 111.7 / 111.5
Resistance:112 / 112.30