The pushes above 135.00 in the past week have been met by sellers but buyers also held their ground by not allowing pullbacks to extend too far. The latest drop at the start of the day was defended by the 200-hour moving average (blue line) but now we're seeing a quick drop in European morning trade following the SNB decision earlier here.
The surprise move exemplifies the narrative that no central bank is being spared from the inflation battle and all eyes are on the BOJ now after the SNB made the policy pivot today. The Japanese central bank is the last of the majors to still be sticking to its guns.
In any case, it looks like traders are getting a bit jittery as USD/JPY has fallen from 134.50 to 132.35 now. The break below the 200-hour moving average puts sellers in near-term control with the drop below the short-term support at 133.18 exacerbating the decline at the moment.
The 38.2 Fib retracement level of the recent swing higher from late May to earlier this week stands at 132.06 and will be the next key support level to watch if the run lower persists.