USDJPY LOOKS TO NEW YORK AND PHILADELPHIA MANUFACTURING DATA FOR DIRECTION
The USDJPY pair remains muted ahead of tomorrow's Bank of Japan interest rate and policy statement, with traders now looking to U.S manufacturing data later today.
After yesterday's disappointing retail sales and inflation figures, the risks are skewed to the downside for USDJPY, which saw the pair drop over 100 pips on weaker U.S economic data.
In the short term, the USDJPY pair remains neutral, with volumes and trading flows relatively light ahead of the Bank of Japan interest rate decision and policy statement.
A break above the 109.85 level should expose whether buyers currently have the appetite for sub 110 levels, with 110.10 and 110.30 acting as key resistance points, with 110.85 acting as the strongest intraday resistance.
In the medium term, the H1 time frame 200 period moving average at 109.95 continues to be a major upside hurdle for the pair.
The 50 percent Fibonacci retracement of the recent 108.80 low to the current 109.85 swing high offers downside support at 109.33, with the weekly timeframe 50 period average offering further support at 109.11.