The Dollar/Yen pair trades lower as greenback bulls take profit following the formation of a new 7-week high for the Dollar index. Greenback investors see no reason to pump the currency further given that the most recent NFP report showed positive yet mixed results. However, things might change today as the release of positive U.S PPI figures might incentive investors into pursuing another series of U.S Dollar buying. Like always, investors need to keep an eye on any developments regarding the trade dispute between the U.S and China as it serves as a key driver to the pair.
The pair is currently ranging above a key support level in anticipation of the U.S PPI figures which will help investors in determining the future medium term outlook of the U.S Dollar. A better than expected PPI report will develop optimism surrounding the greenback's outlook and push the Dollar/Yen pair higher. A worse than expected PPI data will encoure pessimism and push prices lower. The directional bias will only be confirmed after a break of either the 112.475 support level or the 113.418 resistance level.
Support: 112.83 112.60
Resistance: 113.38 113.88