The pair is seen easing from 113.60 to a low of 113.36 in the past hour, not helped by a bit of a drag in Treasury yields.

The Fitch downgrade on Kaisa and Evergrande may be a reason why but considering that domestic markets aren't panicking, it is hard to see any immediate spillovers - at least for now.

In any case, we did see bond yields slip a little. 10-year Treasury yields moved down from 1.51% to 1.49%. And that is helping to see the yen gain some traction to start the session.

Looking at USD/JPY, the slight drop is running into a test of key near-term levels:

The 100 and 200-hour moving averages are resting @ 113.34-43 and that is helping to limit the drop for now. That is a key line in the sand in determining the near-term bias, as it has done this week.

Keep above and buyers will hold some control in search of testing 114.00 again. But move below and that opens back up a potential to retest key support @ 112.60-72. That fits with the narrative set out earlier in the week, that price action is still rather limited.