The U.S dollar has recovered bullish upside momentum against the Japanese yen, with price-action so far trading to an intraday high of 107.22. The USDJPY pair has recently been moving in lockstep with the direction of U.S and Japanese equity markets, losing its correlation to the overall U.S dollar index. The release of today’s February CPI inflation report from the U.S economy, will likely be the catalyst for the next directional move in the USDJPY pair.
The USDJPY pair remains intraday bullish whilst trading above the key 106.72 level, further upside towards the 107.52 and 107.89 levels seem possible.
Should the USDJPY pair move below the 106.72 level, a correction back towards 106.45 and 106.22 support levels remains possible.