The pair is down from 110.20 earlier to 110.00 now as risk sentiment leans towards the softer side to start European morning trade.
Of note, price is testing near-term support from the key hourly moving averages @ 109.99-01. A break below that will see sellers seize back near-term control.
The retreat in the past few sessions also comes as bond yields stall after the surge higher on Tuesday. 10-year Treasury yields had a brief look above 1.38% at the start of the week but is trading all the way down to 1.325% currently.
The daily chart for USD/JPY shows that price is still largely caught in a battle over the past few weeks, struggling for any real conviction to chase firmer direction:
Topside remains limited closer to 110.60-70 in the bigger picture while the 100-day moving average (red line) is helping to provide some support @ 109.76 with swing region support also seen around 109.50-60 for the time being.
If anything, it points to a market that is still relatively confused by the dovish taper that central banks are about to embark on considering the dimming economic outlook.