The Dollar/Yen attempted to bounce during yesterday’s session but fears of global economic slowdown took toll on market sentiment. Traders also took negative clues from the Federal Reserve Bank of Boston President Rosengren when he expected slower growth during the first quarter of the present year. Earlier this morning, Japan released Corporate Services Price index printing 1.1% vs the forecast 1.2%, giving the Dollar a temporary boost. Traders may now emphasize on the February housing market numbers and CB’s consumer confidence survey results for fresh direction while keeping a tab on global risk sentiment.
The USD/JPY bounced from 109.80 (S1) possibly heading towards 110.40 (R1) for a retest. That’s where the bears might show up again to take the market down towards 109.80 (S1) or even further if the S1 level doesn’t hold. On the other hand, if the bulls are able to break above 110.40 (R1), then 110.85 (R2) could be the next destination.
Support: 109.8 / 109.5
Resistance: 110.4 / 110.85