The USD/JPY is on the defensive in Asia, adding credence to signs of a bearish reversal as indicated by yesterday’s candle with a long upper shadow.
At press time, the pair is flirting with the 200-day MA support of 110.19.
The dollar bulls may have been demoralized by the fact that the ongoing policy tightening cycle will end sooner-than-expected as the Fed plans to accelerate the pace of rate hikes but does not see a higher neutral rate.
Also, the 10-year treasury yield failed to hold above 3 percent and added to the bearish pressure around the pair.
The spot could drop below 200-day MA in a convincing manner if the US retail sales, due at 12:30 GMT, print below estimates.