The greenback has recovered above the 106.00 handle against the Japanese yen during the European trading session, reaching 106.20, as the U.S dollar index rebounds across the board. Despite risk-off trading sentiment spreading through financial markets on Tuesday, the USDJPY pair has remained well supported by dip buying demand. Moving into the U.S session, the direction of U.S equity markets and the U.S dollar index are likely to influence the pairs next intraday movement.
The USDJPY pair is bullish whilst holding above the 106.00 level, an intraday correction towards the 106.45 and 107.00 resistance levels remains possible.
Should price-action move back the key 106.00 level, USDJPY sellers will likely test towards the 105.64 and 105.50 support levels.
