The USD/JPY pair closed the day pretty much flat around the 111.00 figure, having lost upward momentum after advancing up to 111.31 at the beginning of the day. Data coming from Japan disappointed, as retail sales rose less-than-expected in February, signaling that consumer spending still lags. The post-Fed slide in the US treasury bond yields further weighed on the USD/JPY. Some investors were concerned about Fed President Kashkari's dovish comments but his cautious views should not be a surprise considering that he was the only U.S. policymaker that voted to keep rates steady. USD/JPY remains closely correlated to US Treasury yields, which have been volatile in recent weeks. Some analysts predict for the JPY to continue to appreciate, towards 108 by end-2017. Less hawkish Fed monetary policy outlook continues to weigh on the US Dollar and further collaborated to the pair's downward trajectory to the lowest levels. Last week Trump announced that his party will probably work on the tax reform now, which partially offset dollar and equities' decline. The G-20 meeting ended and world leaders were unable to find common ground with the new US administration (this outcome will likely weigh on the USD in short term).
The greenback remains under pressure against JPY. JPY is strong and outperforming all of the G10 currencies hitting a fresh 2017 high at levels last seen in late November. Support levels might be located around 110.00 level. On the upside, resistance might be seen around 111.60/112.00. For now USD/JPY is more "BEARISH" and as long as the price remains below 111.60, chances of an upward move will be well-limited, while a break below the daily low exposes the pair to a continued decline towards 110.00.