USD/JPY finds support ahead of 111.00 handle, recovers early lost ground

The USD/JPY pair managed to recover early lost ground to 111.15-10 area and has now moved into positive territory to currently trade absolutely unchanged around 111.40-45 region. 

An improvement in Japan's Tankan Manufacturing Index for the first quarter of 2016 provided an additional boost to the Japanese Yen, resulting into extension of the pair's reversal move from multi-day tops touched on Friday. 

Further downside, however, remained limited amid a broad based positive sentiment surrounding Asian equity markets, which tends to dent the Japanese Yen's safe-haven appeal and helped the pair to recover early lost ground. 

Meanwhile, a mildly negative sentiment surrounding the US Dollar, in wake of Friday's comments from the New York Fed President William Dudley showing now urgency to tighten the monetary policy, might continue to keep a lid on any further appreciating move for the major. 

Later during the NA session, the release of US ISM manufacturing PMI would grab the spotlight and would be looked upon for some short-term trading impetus ahead of this week's important macro releases, including the keenly watched NFP data, and the FOMC meeting minutes. 

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Technical levels to watch

On a sustained move back above 111.60-65 immediate resistance, the pair is likely to make a fresh attempt towards conquering the 112.00 handle before aiming towards 112.35-40 horizontal resistance. On the downside, a decisive break below the 111.00 handle is likely to accelerate the slide back towards 110.60 support area, en-route multi-month lows support near 110.10 level.