Currently, USD/JPY is trading at 114.03, down -0.05% on the day, having posted a daily high at 114.34 and low at 113.98.
USD/JPY has been falling away over the last two days vs the strong bid in the dollar that recently reached as high as a few pips shy of the 115 handle. The dollar bulls have been encouraged by the renewed optimism for the reflation trade most recently based upon Yell's rhetoric and expectations for tax and financial market reforms from the Trump administration populist political stance. Stocks have rallied to new record highs as US yields have been rising supporting the dollar attacking territory on the 101 handle. However, that may have been a bit rich and profit taking has ensued bringing some stability back to the Yen.
Analysts at Commerzbank are bullish above 111.60 but said that below 111.59 would introduce scope to the base of the cloud, which lies at 109.92 and, if seen, we look for this to hold (this is also the 50% retracement of the move up from November). "However this is not our favoured view - we also note that the recent move lower continues to indicate that this is the end of the corrective move (this is the case on all the intraday charts as well), we also note the daily RSI has not confirmed the move lower."