The U.S dollar has moved sharply higher against the Japanese yen during the European trading session, hitting 106.40, as risk-on sentiment returns to financial markets. The USDJPY pair has quickly recovered upside momentum, following news that North Korea is willing to enter discussions on denuclearization with the United States. Moving into Tuesday’s U.S session, traders look towards the release of U.S Factory orders and today’s strong decline below the 90.00 level in the U.S dollar index.
The USDJPY pair is intraday bullish above the 106.00 level, further gains towards the 106.81 and 107.19 levels appear likely.
Should the USDJPY pair move above the 106.00 level, a deeper decline towards the 105.50 and 105.22 support levels seems possible.
