Karen Jones, analyst at Commerzbank, points out that USD/JPY charted an outside day to the topside yesterday and this effectively neutralises the chart.

"Overhead we have 2 downtrends. The first is the 2018-2020 downtrend at 109.50 and the second one from 2015 lies 110.27 and these maintain an overall bearish bias. Yet the market is clearly reluctant to break lower currently. Yesterday's low was 107.65 and failure here is needed to reassert downside pressure to the 106.48 October low and the 105.00 region. Only on a weekly chart close above the 2015- 2019 downtrend line and the December high at 109.72/110.27 (not favoured) would we question our bearish bias."