USD/JPY is on radar as it managed to lose 150 points during the last 3 days, with 100 pips losing on Monday.
There were speculations that the key trigger of the pair move was risk-off sentiment in the financial markets, with Italian budget woes pressuring the stock markets. However, it hardly correlates with AUD and NZD moves that managed to add around 40 pips during the day.
It means the key driver of USD/JPY moves is rather USD weakness than anything else. Long-term picture is still bright for the American currency given the aggressive stance of Jerome Powell, and high chances of rising inflation pressure that may be a good argument for more rate hikes in store.
In this environment, buying USD/JPY on dips looks like a good strategy to follow. The nearest strong support lies around 113.00 area. If the pair fails to break below, there are high chances for a rebound with initial target at 113.60 followed by 114.20.