USD/JPY intermarket: so far not so good for USD/JPY bullish play in Tokyo open

Currently, USD/JPY is trading at 112.28, down -0.02% on the day, having posted a daily high at 112.48 and low at 112.24.

As per the previous intermarket, USD/JPY has not proven a bid so far while EUR/USD remains steady at the highs of overnight trade. However, should the market decide to take profits ahead of key CPI's, the dollar might catch a bid and so long as risk on remains the theme; that could still benefit USD/JPY. 

For the time being, USD/JPY is ticking away from the overnight highs in the open of Tokyo without a catalyst despite a strong and positive performance on Wall Street. Nikkei 225 is down 20276 to 20226 the low so far.  AUD/JPY, on the other hand, still points to risk-on and there is divergence that could benefit USD/JPY eventually during the session ahead.  Aussie data is coming up on the hour and if positive, should boost the Aussie considering the emphasis that the RBA has put on the housing market in its last statement; subsequently fuelling a bid in AUD/JPY and potentially adding additional support to yen bears. 

USD/JPY levels

USDJPY: Prefer to buy dips

Valeria Bednarik, chief analyst at FXStreet explained that technically, the pair presents a positive short term tone. " A short-lived dip below the 112.00 Fibonacci support was quickly reverted, while the price holds above its 100 and 200 SMAs, as technical indicators are trying to regain the upside after a modest downward corrective movement from near oversold readings"