With risk tones faring better on the day, the yen's earlier push failed to materialise into anything significant as we begin European morning trade. Treasury yields are also higher now, with 10-year yields up over 4 bps to 3.165% and that will help to prop up USD/JPY as we get things going on the session.

The breakout attempt above 135.00 last week failed to hold but the fact that price action remains sticky around 134.50 to 135.00 arguably shows that buyers are not throwing in the towel just yet. As things stand, perhaps both buyers and sellers will be looking for some catalyst or trigger to decide the next move.

For trading this week, it seems like a lot will revolve around risk sentiment as central bank talk will be the other only notable event on the agenda. In terms of data releases, we'll have US durable goods orders later today before switching the focus to euro area inflation figures in the days ahead.

Month-end flows will also be a consideration but in such instances, the technicals are still the best way to gauge overall sentiment.