Recently JPY has been at the edge with good dominance over USD. Last week USD was influenced by negative fundamental reports, which provided some push to JPY to progress further since the market bounced off from the 118 level. Today Average Cash Earning report has been issued at the Asian Session which was forecasted to be 0.4% but the actual report was negative, down to 0.1%. The report pushed JPY a bit higher against USD but after hitting the nearest resistance at 112.50 the market bounced off and continued its way downward. As there was no high-impact news on USD today, so it is expected that JPY is going to dominate USD further.
Now let us look at technical view, the price is heading towards the support level of 112.00 and currently the market is showing some bullish move towards the 112.50 area. At 112.50 area if we see some bullish rejection in the intraday charts we will be looking forward to sell with a target towards 108.10 area.
