The Dollar jumped to 110.93 against the Yen earlier this morning after Japan released worse than expected January trade data, with the merchandise trade deficit came much worse at ¥-1,415.0B vs ¥-1,011.0B expectation. Additionally, yesterday BOJ's Governor Kuroda added more pressure on the Yen saying that he would consider adding more stimulus to achieve the inflation target if needed, or if the currency's moves impact the economy.
The Dollar/Yen still looks mildly bullish with price gradually heading towards 111.10 (R1) level to retest it. Price action remains bullish as long as it is trading above the 50-day moving average. A break below it could possibly end this current bullish momentum, and a possible 110 (S1) could be on the cards.
Support: 110 / 109.60
Resistance: 111.1 / 111.40