USD/JPY has been consolidating below 111.60 resistance level since last Wednesday. Currently, the price is struggling to break above the level to create a new high. Today Japan published the Final Manufacturing PMI at 52.7 which was expected to be unchanged at 52.8. This economic report provided little support to the yen today. Meanwhile, the United States unveiled the Core PCE Price Index which was negative as expected at -0.1% versus the previous reading of 0.2%. The Personal Spending was unchanged at 0.0% though it was expected to rise to 0.2%. The ISM Manufacturing PMI, which creates high volatility, decreased to 54.8 which was expected to be at 56.6. Besides, the Construction Spending was published negative at -0.2% versus the expected level at 0.5%. USD is currently getting weaker amid downbeat econmic reports. If the yen manages to hold its gains, we may see further bearish move in this pair.
Now let us have a look at the technical picture. The price is currently trying to break above 111.60 resistance level. It has formed a medium-term corrective structure below 111.60 last Wednesday. In this scenario, if the price rejects the resistance at 111.60 and closes below this level by the end of the day, then we will be expecting the price to head towards 110.10 support level and further to 105.60. On the other hand, if the price breaks above 111.60 with a daily close, then we will be looking forward for more up move towards 114.60.
