The pair saw a notable drop in US trading yesterday, falling quickly from near 151.90 to 151.20 before dip buyers stepped back in. Once again, the recovery was swift as price action then settled in around 151.50 to 151.70 levels and that is where we are trading at right now ahead of European morning trade today. So, what's next for USD/JPY?

USDJPY W1 14-11
USD/JPY weekly chart

In the bigger picture, the momentum continues to point towards an upwards trajectory for the pair. That is despite long positions being rather crowded at the moment. The same fundamental factors that have driven USD/JPY higher for large parts of this year are all still in tact.

The Fed may not be tightening further but the bond market rout (higher yields) has been a key catalyst to underpin the pair. Add to the fact that the BOJ continues to disappoint time and time again throughout the year, with the latest here.

The next key hurdle now for the pair is near the 152.00 mark, where the highs last year stalled as the BOJ stepped in to intervene.

But as Tokyo has loosened the shackles at the 150.00 level, I don't think the above figure level will be one to offer too much resistance. Instead, I'd be looking towards the 155.00 mark for any potential intervention by Japanese officials next.

All traders need now is the next catalyst and we could get that from the US CPI data later today. So, keep your eyes peeled for that.