USD/JPY is basically unchanged on the day at 112.55 currently
As mentioned, I’d be wary of further gains in the dollar at this point around the resistance “air pocket” but if that gives way I do expect the dollar rally to get some wings. Given the momentum seen so far today, the retracement here feels more like a speed bump for the time being though.
For USD/JPY, the pair moved lower to touch a low of 112.42 on the day as US equity futures also slumped in the last two hours of trading and US Treasuries also trade flat on the session:
As for USD/JPY, keep an eye out on the dollar index too as that will also be a key determining factor on the day.