USD/JPY has been an opening bid in Tokyo, extending a few pips on the rally onto the 112 handle in early Asian trade. USD/JPY has moved up from the phase of consolidation above 111.20, breaking up in a grind through the mid point of the handle and has continued to drift higher through previous highs of 18th March's 111.75. The US dollar has been recovering from the bout of supply that came about post the surprise dovishness in the FOMC meeting last week while Yen's long positions have been trimmed according to the CFTC positioning that has deteriorated for the first time in six weeks. USD/JPY: positions maybe short, but not short - Scotiabank USD/JPY levels After clearing through 111.86 and the 38.2% retracement of the Fed sell-off, the bulls are back in control. "USD/JPY last week broke down from the converging range last week and while this is negative we have not yet registered a close below 110.98," explained Karen Jones, chief analyst at Commerzbank. However, Valeria Bednarik, chief analyst at FXStreet notes, "In the 4 hours chart, the Momentum indicator has turned south above the 100 level, while the RSI indicator heads higher around 46, all of which continues to limit the possibility of a stronger advance." Should the rally continue, 112.97 might contain the bulls as being the 20 dma. For more information, read our latest forex news.