- USD/JPY is currently trading around 111.96 levels.
- It made intraday high at 112.20 and low at 111.83 marks.
- Japan will release flash manufacturing PMI data at 0200 GMT. Market anticipates 50.6 m/m release vs 50.1 m/m previous data.
- Pair likely to trade in between 114.00 and 111.31 marks. A sustained break of either side provides further direction to the parity.
- On the top side major resistance falls at 114.87 and pair is likely to consolidate below that level.
- A daily close above 114.87 will take the parity towards 115.96 marks.
- On the other side, initial support level is seen at 111.31 levels. A daily close below key support level will drag the parity towards 110.66/108.75/107.51 marks thereafter.
Positioning is inconclusive at this point, with prices offering no clear cut signal to initiate a long or short trade. We will continue to remain on sidelines for the time being.


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