USDJPY has traded lower after news that the BoJ may consider providing more flexibility to its monetary policy. This made JPY yields trade higher and FX prices to trade down to their ascending trend line. The next BoJ meeting is next week but it could easily be that they would wait for the October meeting, after the election in September.
The USDJPY is consolidating around its trendline support trading between 111.10 and 111.35. A break under the 111.10 level will add bearish momentum and lead the pair towards the 110.75 (Monday low) and 110 in extension. On the flip side, a stronger dollar might push the pair above the 111.35 and lead towards 112.15.
Support: 110.75 110.05
Resistance: 112.15 113.15