Lows today were supported by the bottom side of the wedge
And price now sits between that bottom side mentioned and the 200-hour MA (blue line) @ 111.35. The dollar retreated from the highs yesterday in US trading and that saw the pair slip towards the 200-hour MA.
And some decent data in the morning from Japan has helped out with the yen a little to push the pair to lows of 111.23 before buyers leaned on the support level above and defended the move to the downside.
With Treasury yields still fast asleep so far this week and not much other developments on the trade front, this ping pong action could continue on for quite some time yet. As mentioned yesterday, the trade would be to go for a break on either side of the wedge but even then there are near-term support and resistance levels lurking nearby too.
Other than yields and trade, the dollar part of the equation remains relevant as well. The dollar index failed again to sustain a break above the 95.50 levels but remains near there still in trading today. So, if anything do keep an eye on that.
Apart from that, GBP/JPY appears to have some further downside momentum still (moving towards a test of the June low and the 76.4 retracement level) so that may help to keep the yen underpinned a little for the time being:
