The pair rallies for a second day in a row, rebounding after three days of losses as buyers reemerged at bearish attempts around 111.00.
The greenback saw a limited downside pressure from the dovish FOMC minutes as traders were ready for such an outcome. Then, a rebound in US yields coupled with strong economic data supported the dollar across the board. The US data showed a larger-than-expected increase in PPI last month, while the initial jobless claims were at the lowest since 1969.
In the short-term, the pair could proceed with bullish attempts but the impetus will likely be limited as investors may turn cautious ahead of US banks earning reports due later today. Weak corporate results could hurt risk sentiment and send the safe-haven Japanese currency higher. In this scenario, USDJPY will retreat from the current highs and may get back below the 200-DMA at 111.50.