The pair fell rather sharply on 26 November as news on the omicron variant started doing the rounds more intensely and there has been some constant downside pressure since. However, sellers have found it tough to break the 9 November low - at least on the daily - @ 112.72 for the time being.
That remains a key line in the sand that buyers are holding, with price also bouncing back to around 113.00 today. The mood is helped by a light rebound in Treasury yields upon meeting key support (chart here).
So, how are things shaping up for USD/JPY to start the new week?
The first point to note about the pair is the support level above @ 112.72. That is the technical level to watch in case risk sentiment takes a turn for the worse, as sellers will eye that to open up the next downside leg.
The second point relates to the near-term chart:
For now, sellers continue to keep in near-term control as price action rests below the key hourly moving averages. While the 100-hour moving average lurks nearby @ 113.12, I'd pin the minor resistance around 113.60 and the 200-hour moving average @ 113.82 as the key resistance levels to watch for the pair.
The onus is on buyers to try and break above that to reestablish some control. Otherwise, the current range that the pair can play around with is rather well defined as per the above. And of course, subject to the back and forth in risk/yields and virus headlines.