The next big move in USD/JPY is going to come in reaction to the US-China trade deal signing, more specifically how markets will interpret the language/communication of the deal as well as what the details - or perhaps lack thereof - may entail.
As mentioned yesterday, despite some poise to keep above the 110.00 handle, there is a sense that any move higher in the pair remains "heavy" amid the lack of approval from other risk trades - which are also trapped by the key event later today.
This puts us back in a similar spot to where we were yesterday as price action continues to sit in limbo - more or less. Buyers are struggling to extend a move beyond the 110.00 level while sellers are also struggling to pin down price action back under 109.60-70.
Eventually, something's gotta give in the pair and traders will be looking towards the US-China trade ordeal this week to provide more direction on how to proceed next.
Despite the optimism over the past few weeks, there is certainly cause for concern that we may see a sell-the-fact play when this is all done and dusted - particularly if the details of the trade deal isn't enough to satisfy the market's appetite.
If that happens, expect that to spell trouble for USD/JPY in the latter half of this week.