Comments by Nomura Securities' Japan head of G-10 FX trading, Koichi Takamatsu

He says that the pair may see further buying into the London and New York sessions following China's rebuttal of the comments made yesterday that they are considering to curtail purchases of US debt. And the rebound so far lends technical support and may open the door to the upside towards mid-112 levels.

He goes on to say that the pair is expected to gradually regain strength as factors prompting position adjustments fade one by one - such as BOJ's market operations and China's investment plans linked to Treasuries.

This is how the USD/JPY daily chart looks like now:

Sellers are still in control, unless buyers can start to break above the 200-day MA and the 100-day MA (red line @ 112.26). Only then, that would put a strong bias back to the upside, where we can see the pair head towards the 113.00 levels again.