USDJPY ONLY BULLISH ABOVE 112.70
The U.S dollar is starting to recover upside momentum against the Japanese yen in early trading, after slipping back towards the 112.30 support level on Monday. The USDJPY pair fell, as the U.S dollar index came under selling pressure across the board, however the pair quickly found dip buying demand. Risk-on sentiment is now boosting the USDJPY pair higher, as traders look for a clear break-out of established trading range between 112.02 and 113.10. Asian stocks are also moving higher on Tuesday, as optimism builds that the House Senate will later pass the U.S tax bill.
The USDJPY pair turns intraday bullish while trading above the 112.70 level, price-action may then head towards the 113.10 and 113.70 resistance levels.
When price-action start trades below the 112.70 level, sellers will likely retain control of the pay, price may then head back towards the former swing price-lows at 112.30 and 112.