The Dollar rallied against the Yen on broad-based USD demand as stocks rallied. Japanese markets are closed today due to its Vernal Equinox Day. We can expect volatile trade in this currency pair as well. Overnight Japanese All Industry Activity rose to 0.8% beating forecasts at 0.3%. This contrasts with the weak US Philadelphia Fed Manufacturing Index and strong rise in New Unemployment Claims.

US Dollar buying continued unabated in volatile conditions following fresh coronavirus headlines. Stock futures have seen done a U-turn and this should see the USD/JPY capped at 111.00 to 111.50. The next resistance level is at 112.00. Immediate support can be found at 110.30, followed by 109.70 and 108.60.

Look for a trading range today between 108.50-111.20. Would prefer to sell rallies up at these levels as fresh risk-off hits Asia. US 10-year yields were also lower by 5 basis points. Markets will continue to monitor coronavirus developments.