The USD/JPY was extending its decline from yesterday's highs at 104.15 but recently, the pair seems to have found support at 103.75 where the pair bounced back to trade close to 104.00 again.
Currently, USD/JPY is trading at 103.94, down -0.12% on the day, having posted a daily high at 104.18 and low at 103.78. The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bearish.
"US 10 year notes yield 2.38% putting the spread between the US and Germany close to 147 bp, the highest on record, dating back to 1990, where my data set begins," Jamie Coleman comments. "That's dollar-supportive."
If the pair remains on the constructive field, it will face next resistance at 104.00 ahead of 104.15 and 104.25. On the downside, supports are at 103.75, 103.50 and 103.40.