The USD/JPY is trading close to the 110.00 handle in early Wednesday action following Tuesday's drop-and-bounce as broader markets roiled following a notable ramp-up in the trade war rhetoric between the US and China.
Another round of tariffs from the US targeting $200 billion more in Chinese goods is expected to make its way into headlines soon, pending a write up by the US Treasury Department, and market risk appetite evaporated yesterday as traders balk at the prospect of US President Donald Trump bringing a trade war one step closer.
The Bank of Japan (BoJ) released their latest Monetary Policy Meeting Minutes, and little of note came out of the report, with the BoJ noting that it is currently "appropriate" for the central bank to abandon their timeframe for achieving their inflation target of 2%, a goal that has remained far out of reach for the Japanese economy despite record-setting easy monetary policy.
The rest of the week has little of consequence for the Yen, until National CPI figures late Thursday at 23:30 GMT, though the effect will be muted as Tokyo CPI, which releases several weeks earlier, is an accurate bellwether of inflation within Japan.
USD/JPY levels to watch :
Support levels: 109.55 109.20 108.70
Resistance levels: 110.15 110.45 110.80
Source : Fxstreet