Karen Jones, analyst at Commerzbank, suggests that the USD/JPY pair is a bid near term as it is holding over a near term channel at 111.17 and while above here should chip away at resistance.

“Immediate resistance is 112.23, the 6th December low, the 112.43 55 quarter moving average and recent high at 113.71. We have a 5 month resistance line also at 113.05. We remain unable to rule out a deeper retracement to the 55 day MA and the 2 month uptrend at 110.16/23, which should hold for an upside bias to be preserved.”