USD/JPY on a roll after upbeat US data but that's not the only driver

USD/JPY 160 pips off the lows

USD/JPY is up 106 pips to 113.81 and most of it came in the past hour or so after a strong construction spending report and upbeat ISM manufacturing data.

Even though those reports were good. I'm hesitant to give them the full credit. The selling in the pair yesterday was overdone and driven by month-end flows. I said as much yesterday.

"Bottom-picking longs are getting squeezed today and that's an opportunity. The BOJ does not want to see the pair below 111.00 so buying here at 112.76 offers limited downside and there's a realistic chance of a return to 116.00," I wrote.

Greg was also constructive on USD/JPY in his technical report earlier.