The pair is trading back to near flat levels around 122.80 currently, erasing the earlier drop from today after BOJ governor Kuroda provided more verbal intervention here.
The low for the day hit 122.39 so the bounce has been rather modest, helped by a defense of the 200-hour moving average (blue line) at least.
Since the pullback from 125.00 last week, there has been some consolidation in the pair and as of late, it looks like buyers are defending the key hourly moving averages (now seen @ 122.29-45) but unable to firmly break past 123.00.
There is also some added support around 121.30 as noted from the lows last week. However, in the bigger picture I still view the pair as being “trapped” in between 120.00 and 125.00 for the most part. In between that, it suggests a lack of firm direction in terms of price action after the surge higher in March trading.
In essence though, it is hinting that we are settling into a new range for USD/JPY so long as the bond market continues to be pressured amid the ongoing focus on central banks and inflation.