The pair is now down 0.7% to 146.30 and is closing in on the lows for the week as seen on Monday around 146.23 at the time. This comes after Ueda's comments from earlier today, adding to his meeting with Japan prime minister Kishida in the last hour.

USDJPY D1 07-12
USD/JPY daily chart

The two met to discuss the economy and financial trends among other things but the notable takeaway is perhaps that they are looking to align the direction of monetary policy. The BOJ has been continuously blabbering about waiting on next year's spring wage negotiations before deciding anything and they are now making sure that the government is also agreeable to that perhaps.

In all fairness, Tokyo tends to be the puppet master on most occasions but if the BOJ does not follow through come March to April next year, there will be hell to pay in markets - especially for the Japanese yen.

Going back to USD/JPY at the moment, price action continues to hold below its 100-day moving average (red line) and that is the key resistance level that is helping sellers to drive price lower this week.

A break of the week's lows at 147.23 will tee up a potential drop towards 145.00 next for the pair, especially if Treasury yields continue to struggle in the bigger picture.