USD/JPY looking for 148.00 as the Yen extends a broad-market recovery

• The USD/JPY is slipping into a seven-week low as the Yen recovery extends.
• Japan Tokyo Inflation figures due later in the week, could put a kink in Yen rally.
• USD/JPY set for its third straight down day as markets sell Greenback, bid Yen.

The USD/JPY is seeing further declines on Monday, with the Japanese Yen (JPY) gaining over a full percent against the US Dollar (USD). The pair has backslid from the 150.00 handle and is currently aimed at the sub-148.00 chartspace.

USD/JPY: Targeting a drop to around 146.25 in the next 1-2 weeks – Scotiabank

Overall declines in the US Dollar's speculative position are exacerbating the Yen's recovery from multi-year lows, and the trick for Yen bulls will be to keep the JPY on track through Japanese inflation figures due later this week, slated for early Friday.

Friday's Japan National Consumer Price Index (CPI) inflation reading is expected to show a slight improvement in core CPI (CPI less volatile fresh food prices), with the annualized figure forecast to tick up from 2.8% to 3.0%.

The Bank of Japan (BoJ) has been trapped in an incredibly dovish stance as of late, which helped to fuel the Yen to some of its lowest bids in fifteen years against some of the other major currencies. An upbeat inflation number would be a saving grace for the BoJ which is hoping some of their extraordinary policy measures will help keep the Japanese economy from slipping back into long-term deflation.