• USD/JPY bears are lurking as the price remains in bearish territory. 
• The threat of intervention is back in focus for the days ahead. 

USD/JPY remains on the backside of the counter-trendline on the hourly chart which leaves a bearish bias on the charts for the days ahead. There is also a bearish wick on the daily chart that would be expected to be filled in. However, intervention risks weigh also. On the other hand, the US dollar is back in bullish territories on the charts and US yields have battled back also. The following illustrates the bias on the various time frames across the assets. 

US 10-year yields daily chart

The ten-year yield has carved out an M-formation on the daily chart and is pressuring the neckline that meets the counter-trendline resistance on the way to a 50% mean reversion of the prior bearish impulse.  Failures here will be supportive to the yen, especially in an environment whereby the MoF's actions are aimed at scaring off speculators and slowing the pace of JPY falls. 

DXY daily chart

As for the US dollar, it has climbed back into bullish territory. Looking forward, if the bulls can get above 112.00 and then 112.50, there will be prospects of a move to 114.00. 

USD/JPY H1 chart

This leaves the outlook for the yen tainted but highly uncertain. The fundamental support a weaker level vs the greenback but the threat of MoF intervention could prune rallies through a grind higher. The bulls will need to get over 148.80 but will most probably be at higher risk for sudden bouts of yen strength as the intervention gets underway. 

On the other hand, a compelling feature o the daily chart has emerged:

The bearish wick would be expected to be filled in: