USD/JPY regained some positive traction on Monday, though lacked bullish conviction. Rebounding US bond yields turned out to be a key factor that extended some support.
USD/JPY is consolidating above 113.26, it is on the defensive and looks increasingly toppy.
Should a close below the 113.26 recent low be seen we would allow for a deeper sell-off to 112.56, the 38.2% retracement, and potentially the 111.66 July high.
While above the 113.26 support, scope will remain for 114.55/69 the November 2017 high and recent high
Later during the US session, Powell's remarks at an online conference might influence the USD and produce some trading impetus to the USD/JPY pair.