As things stand, bids around the 109.00 handle is helping to keep USD/JPY afloat despite some weakness in trading to start the week.
US-China trade headlines remain the major risk for the pair and Peter Navarro's remarks over the weekend were less than convincing of us moving towards conciliation.
From a technical perspective, the pair also made a minor double top pattern as seen above close to 109.50. For now, buyers have lost a bit of near-term control after price fell through the 100-hour MA (red line) earlier today.
However, the 109.00 handle remains key for the time being.
In the bigger picture, the figure level and the 200-day MA (blue line) @ 109.03 will be the key levels to pay attention to over the next few days.
If buyers can hold above that, there is still some semblance of momentum to move higher with daily resistance seen from the 61.8 retracement level @ 109.37.
Fundamentally though, it's all about trade headlines at this juncture but keep an eye on the levels above to get a sense of whether or not we will see a further technical extension on either side - if supported by the right headlines that is.