USD/JPY bears still in control and eye below 110 hanle

• USD/JPY on the verge of a breakdown?
• USD/JPY eyeing 109.80?

USD/JPY was sold off yet again and bears were in control right the way down until 110.25 overnight. Currently, USD/JPY is trading at 110.23, down -0.07% on the day, having posted a daily high at 110.35 and low at 110.07.

The yen was bid in NY despite the BoJ's affirmations of easy policy overnight, (leaving CPI forecasts and policy unchanged with QQE/YCC the same). There are 110.00 option barriers also in play if 110.15 supports give way in the Asian session with closes in subsequent sessions. also worth noting that the Tankan fell to 111.04 overnight, limiting further correction possibilities  overnight and thus we have the bears in Tokyo eyeing up a pop through the 110 handle.

Japanese key data

As far as data went in Japan, the December trade data came in at Y 359.0bn (vs. expected Y 535.0bn) while the Nikkei Manufacturing PMI for January came in at nearly a 4 year high.

USD/JPY levels

Technically, the pair is poised to extend its decline, given that in the 4 hours chart, it's developing well below its 100 and 200 SMAs, both bearish, while technical indicators hold directionless within negative territory, although with no clear directional strength. This month low at 110.19 is the immediate support ahead of a stronger one in the 109.80 price zone, with a break below this last favoring additional declines for the upcoming sessions.