USD/JPY has bounced off the resistance level of 112.30 after the impulsive bullish pressure recently. USD has been quite positive with the economic reports and events, which helped the currency to gain further over JPY that could not sustain the gain till now. Today JPY Flash Manufacturing PMI report was published with a slight increase to 52.6 from the previous figure of 52.2, which was expected to increase to 53.4. Though the economic report was better than the previous one, it was not provide a better-than-expected result, thus affecting the currency. Along with this, BOJ Governor Kuroda has been quite hawkish and he is expecting the inflation target to achieve 2% very soon though there are certain risk for the yen in the coming days, which might weaken the currency. On the USD side, today FOMC Member Dudley’s speech was quite neutral having no hints for the upcoming market movements and FOMC Member Evan speech is also expected to be mostly the same, which is going to take place today. To sum up, though USD started the day with a higher push against JPY, but despite having a worse-than-expected economic report, JPY has currently shown good gains against USD, which does hint us that the Yen is going to dominate USD for the coming days until USD comes up with better economic reports.
Now let us look at the technical view. The price is currently residing below the resistance level of 112.30, which has been retested today as well. Currently, the price is expected to reach the support area of 110.20-60 as the price remains below the 112.30 resistance level. As of the recent impulsive bullish move towards the 112.30, the bearish move towards the support area of 110.20-60 is expected to be quite corrective in nature.