The entire world is bullish USD/JPY it seems and many are positioned accordingly. Sentiment will remain bullish whilst the respective central bank policies diverge but with positioning already at extreme levels, pull-backs are inevitable. We are currently experiencing a modest one, after 109.50 was rejected and ex-BOJ Iwata comments spooked some longs.
110.00 is the big optionality level and will act like a magnet on the topside. Downside support should re-emerge near last weeks 107.00/50 consolidation level.
I’d suggest a period of range trading inside of these range edges.