The USD/JPY is trading firmly in a consolidative range over the past few weeks. After having traded briefly below the key Y110 threshold in late August, the latest rally has been choppy and has stalled below Y112 numerous times now.

This potentially highlights a 2-month falling trendline in both price-action and RSI, suggesting a re-test of 100-day moving average support before potentially developing a move back through Y112 towards Y113 and above.

If, however, the 100-day (now near Y110.60) is unable to cushion weakness, then the psychological Y110 region stands to be re-tested. Further weakness from there would then jeopardize the latest bullish wave-count and potentially re-focus the May low near the Y108 handle.