The pair had threatened a potential break below the 155.00 mark yesterday. That is before dip buyers showed up in Asia today and the rebound is continuing through to European trading now. And that is seeing USD/JPY trade back up to 156.20 levels currently.
It's a tough one to attribute the jump today with any major developments. The only data out of Japan was this one on wages and it was still marginally in favour for the BOJ.
Besides that, the bond market is staying more tentative as noted here. And the dollar isn't really doing much else across the board elsewhere in European trading.
Looking back to the chart above, the rebound is encouraging in moving back above 155.00 and erasing the losses from yesterday.
However, sellers are still in near-term control with the 100-hour moving average (red line) now the next key test at 156.37.
But if anything else, the dip buying today shows that there is still strong appetite to be betting against the yen at the moment.
