Karen Jones, analyst at Commerzbank, suggests that USD/JPY continues to consolidate below the 200 day ma at 109.06 and they would allow for this to hold the initial test.

“The up move has lost some steam and further consolidation is likely. Beyond this the market remains well placed to try the topside once more. Above the market lie the 55 and 200 week moving averages at 109.75/110.12 and the 2015-2019 downtrend at 110.98. Dips will find initial support at the 20 day ma at 107.96 ahead of the 106.48 October low. Failure at 106.47 will target 106.00, then 105.32/78.6% retracement which is the last defence for the 104.46 August low.”