10-year yields are holding around 1.28%, continuing its meandering mood over the past few weeks and that isn't helping with sentiment in USD/JPY whatsoever.
The daily chart shows that price action in the pair is largely more confined to levels between 109.00 and 110.60-70 for the most part.
As such, it is tough to really get a handle on what may come next for the pair unless there is a clear catalyst either from a technical break or until the bond market makes up its mind. I'd argue the latter needs to come first but we'll see.
If anything, the latest nudge lower in USD/JPY still doesn't offer much unless there is a push by sellers to threaten the 109.00 handle.
But as mentioned above, for that to take place, perhaps we may need to see 10-year yields also break out of its technical range since July: