After some back and forth action, the pair was more or less flat as we got into European trading today. Sellers wrestled back some momentum amid a drop in bond yields yesterday but today, we're seeing buyers return the favour in erasing most of the decline from the day before:

USDJPY H1 31-05
USD/JPY hourly chart

The minor support around 156.55-57 has helped to keep buyers in the game, with price action holding above that as seen on the hourly chart above. Buyers did try to work with that over last few sessions but failed to move above the 100-hour moving average (red line). That is until we got to European trading today, before a push back above 157.00 as well.

Now, buyers are back in near-term control as they look to inch closer towards potential intervention territory by Tokyo. The MOF just confirmed that they spent nearly ¥10 trillion to prop up the yen in the past four weeks. So, that will likely keep traders a bit more cautious before the weekend at least.

We'll see though. There is still the US PCE price data to come later in the day.