USD/JPY has broken to the upside in a strong bullish fashion

I must say, the extension lacks the backing of the DXY strength, that’s why the overstretched nature of the intraday rally runs the risk of correcting towards the top of the broken range. As long as the ‘true risk on’ environment remains in place, this market looks poised to trade higher, although if one aims to capitalize on JPY supply inflows, other currency pairs such as the GBP/JPY, AUD/JPY or NZD/JPY look better positioned in light of the current state to seek out riskier currency bets.