FxWirePro: USD/JPY pressured lower on persisting risk-off, good to sell rallies, target 111.65

The Japanese Yen remain in demand on the back of the extension of risk-off trades, USD/JPY under heavy selling pressure as we head towards mid-Asia.

• Markets largely ignore recent series of weak Japanese data as the broader market sentiment continues to dominate.
   
• Data showed Chinese manufacturing sector activity continues to deteriorate, as reflected by both the official and Caixin PMI reports.
   
• China Feb Caixin Manufacturing PMI came in at 48.00 vs 48.4 expected and 48.4 last. While the official China manufacturing PMI fell from 49.4 in Jan to 49.0 in Feb, the weakest reading in more than four years.
   
• Falling Japanese stocks adding to Yen upside, the Japanese benchmark index, the Nikkei 225 drops -0.83%.
   
• The pair finds immediate resistance at 112.84 (5-DMA), while 111.90 (Feb 25th lows) is next support on the downside.
   
• Focus shall be on US ISM and Markit manufacturing PMI reports, which will shed more light on the US economic outlook.
   

Recommendation: Good to sell rallies around 112.60, SL: 113.10, TP: 111.90/111.65/111.20