USDJPY Short Back Into Former Range

After a wide move down and sharp buy up. USDJPY settles near the high of its current range. While the Dollar has shown great strength, former consolidated periods have brought selling action, and I expect for more pressure to step in as we get into the week. The likely confluence for this is inflation data, with the Fed still targeting 2% and the Japanese Reserve mentioned hikes, it remains likely that the pair finds some downward pressure as Yen investors take advantage of these mark ups. An interesting correlation I noticed was the Dollar and Stock indexes, specifically the S&P, there is a strong positive correlation as we would have it and I don’t expect them to decouple this week, so it will be crucial to keep an eye on earnings as well. Technically speaking, the market broke structure last week on the sharp downturn, and it’s notable that a strong displacement up has not yet been corrected from March. Naturally I expect the market to trend in that direction. That being said, I have topside targets marked as 152.500 and 153.800 as we could see a deviated move through the high if we fail to breakdown through the level marked “Bulls Last Stand”