USDJPY PAIR SUPPORTED BY DIP BUYING
The U.S dollar continues to hold firm above the 107.00 handle against the Japanese yen, with traders using any pullbacks in price-action as an opportunity to buy the pair. The USDJPY pair has also diverged from Monday’s theme of U.S dollar weakness, with the pair continuing to create bullish higher price-highs. The USDJPY pair remains intraday bullish while trading above the 106.77 level, and currently retains a high correlation with U.S and Japanese equity markets.
The USDJPY pair remains intraday bullish while trading above the 106.77 level, further upside towards the 107.49 and 108.00 levels appears possible.
Should the USDJPY pair fall below the 106.77 level, a deeper price-correction towards the 106.60 and 106.30 levels seems likely.