USDJPY is coming higher, making an extension as expected within an impulsive recovery that may not be over yet as US yeilds are still trading below September highs. When this one breaks, recovery on USDJPY may resume, especially if dollar will stay in bullish mode after the US CPI report later today. Any intraday pullback on USDJPY can stop at 145.90, that was the previous swing high.
From a more mid-term perspective, keep in mind that this run up on USDJPY is the final leg of a higher degree trend that can stop at 148.00 area; it was resistance back from 1998. Also, we see hear warnings from Japanese policymakers against investors selling off the Japanese currency, raising speculation about the second round of intervention.
