• USD/JPY broke the phase of consolidation and edged higher to take out 38.2% retracement of the Fed sell-off (113.816 to 110.667) at 111.87.
   
• The pair extended gains onto the 112 handle in early Asian trade, but was unable to hold gains and has edged lower to currently trade around 111.85 levels.
   
• Data released earlier showed that Japan Nikkei Manufacturing PMI slipped into contraction, came in at 49.1 in March from previous 50.1.
   
• Markets largely ignore poor PMI data, USD/JPY continues to slip, with immediate support at 111.81 (hourly cloud top) and resistance at 111.95 (hourly 5-DMA).
   
• Breaks below 111.81 could see test of 111.58 (trendline) and then 111.42 (session lows Mar 21).
   
• On the upside break above 112.24 (50% Fib of 113.816 to 110.667 retrace) could find next resistance at 112.61 (61.8% Fib of 113.816 to 110.667 retrace).