The USDJPY is trading lower for the 7th day after news that the BoJ may consider providing more flexibility to its monetary policy, which is leading the Japan 10-yr JGB yield to rise to its highest in almost a year. Next week the BoJ is holding a 2-day meeting where it could easily report a change to its monetary policy which will lead to a collapse of the USDJPY. On the other hand further, US Dollar weakness seems likely.
The USDJPY finally broke under its trendline support at 111.10, to trade to 110.68. A bearish momentum is likely and could lead the pair towards the 110.15 area (200-period moving average) and 109.45 in extension. On the flip side, a pullback from here might push the pair to the 111.10.
Support: 110.15 109.45
Resistance: 111.15 112.15