And it's not just USD/JPY, yen pairs in general are seeing a good bounce on the day as markets are doing what it does best when it comes to the trade rhetoric and that is to fade it. E-minis and Treasury yields have also moved higher on the day and that is helping to underpin yen pairs further as the session begins.
For USD/JPY, the pair now looks to be moving past the daily resistance at 112.15 from the 1 August high. Beyond that, resistance is seen at 112.75-80 before the 113.00 handle comes into play and of course the July highs of 113.17.
It's setting up for a risk on session in European trading today and with little notable events on the calendar, it's going to take an overbearingly negative headline to turn risk sentiment on its head. And that makes the bullish conviction for USD/JPY and yen pairs in general rather strong ahead of the BOJ meeting tomorrow.