With no major reports coming out of Japan, we turn our attention to the Retail Sales Report (forecasted to be 0.4%) and the Core Retail Sales Report (forecasted to be 0.5%) coming out of the U.S. during Friday's session. Moreover, the good news that the U.S. and China are going to resume talks has driven the pair higher during yesterday's session. The Dollar/Yen may continue to see upward momentum as long as there is good news coming out otherwise, we may see a consolidation or even a slight reversal.
With the good news of talks between the U.S. and China, the Dollar rallied against the Japanese Yen during yesterday's session creating higher levels of support and resistance. After reaching slightly above the 112 area yesterday, the pair started off with a bearish bias during today's session. The Dollar/Yen may see a further retreat at the beginning of Friday's session before making its bullish move towards the 112.05 figure. If it can break that 112.05 resistance level we may see the pair moving in the direction of the 112.25 area, should we continue to hear good news.
Support: 111.47 111.18
Resistance: 112.05 112.25