USD/JPY Flat around 110.00 on weak Japanese inflation

USD/JPY is trading almost unchanged today around 110.00 handle.  Markit manufacturing PMI marked 7-month low and eased a little the US bears’ bearish pressure. Meanwhile mixed US equities underpin JPY’s safe-haven appeal and also heлped for the downward movement. But  the resurgent US bond yields finally stopped the march to the south, at least at the time of writing.

Technically speaking the short-term outlook remains neutral. On the four hour time frame the price is developing below its moving averages, but feeling comfortable around 110.00 level. RSI is looking for direction around 47 while stochastic is showing good upward momentum, located below its mid-line. 

The 110.20-110.30 area will continue to act as an immediate resistance, which if broken to above will lead the pair towards next supply figure at 110.75 before potential hike of the critical 111.00 hurdle. The downside remains supported by 109.85 but in case is breaking it to below, doors are opened for testing 109.50 intermediate support and having next bearish target around 109.00.