The U.S dollar has broken higher against the Japanese yen, with the pair hitting 111.48 overnight, following a sharp reversal in the U.S dollar index and a return to risk-on trading sentiment in global equity markets. The USDJPY pair currently trades around the key 111.20 technical region, with buyers supporting any dips lower in intraday price-action. Going forward, the pair will need to break above the 111.48 resistance level to keep the current bullish momentum intact, with the 112.00 handle then likely to come into focus.
USDJPY buyers retain control of the pair while price-action trades above the 111.22 level, further upside towards the 111.74 and 112.00 levels remains possible.
Should the USDJPY pair start to trade much below the 111.22 level, a further slide towards the 110.80 region appears likely.