USD/JPY: a buy on dips towards cloud top around 111 the figure?

Currently, USD/JPY is trading at 111.91, up 0.01% on the day, having posted a daily high at 111.96 and low at 111.80.

USD/JPY has been in recovery after the Trump news in the US session when the major was extending the BoJ-downside from yesterday's announcements and bullish growth outlook from Kuroda. The Yen caught a bid on the back of a wobble on Wall Street with the Trump news while the dollar lost ground across the board with a drop in the US yields.  There was a mixed bag of data; notably, the US Fed's Philly Survey was a miss. 

BoJ: an unaltered dovish stance, supportive of crosses - Nomura

"With the Bank of Japan out the way, and speculation about BoJ taper removed (for now), the focus turns to next week’s crop of data with the flash PMI Monday and a heavy run of month end data next Friday including jobs, household spending, CPI and jobs data," explained analysts at Westpac. 

USD/JPY levels

USD/JPY: Prefer to buy dips. SL under 111.00

USD/JPY' s cloud top & 61.8% of Jun-Jul rise at 111.26 & 110.98 are near term supports below 111.46 recent lows. "We have tended to view dips in USD/JPY sub 110 as a buy on the basis that Japanese demand for foreign assets has been improving and we are forecasting the Fed to raise rates and taper before the end of the year," added the analysts at Westpac.

"In the 4 hours chart, the price is once again struggling with its 200 SMA, while technical indicators are recovering modestly within bearish territory and below their previous daily highs, not enough to support additional gains ahead," explained Valeria Bednarik, chief analyst at FXStreet.