The offered tone around USD/JPY strengthened, pushing it to a two-week low of 111.31 due to a surprise contraction in the US services activity and a drop in the new home sales. USD sold on risk-off and weak data The greenback is being offered against most majors after the preliminary services PMI highlighted contraction of the activity in February. Furthermore, Jan new home sales dropped 9.2% to 494k SAAR, well below the 525k rate expected. The bid tone around JPY also strengthened on account of the risk-off in the US equities. The Dow index is trading 1.3% lower on the day, helping the traditional safe havens extend gains. The spot currently trades around 111.40 levels. USD/JPY Technical Levels The immediate support is seen at 110.97 (Feb 11 low), under which the pair could extend the drop to 109.60 (Sep 2014 high). On the other hand, a break above the immediate resistance at 111.66 (hourly 5-MA) would open doors for a re-test of 112.22 (hourly 50-MA). For more information, read our latest forex news.