Following through on Yellen-induced Friday gains, the dollar strengthened further against the yen overnight and in early European session. News about sales tax hike delay and lackluster retail sales report from Japan helped to support USD/JPY.

The pair rallied more than 100 pips before stalling near the middle of the pre-BOJ range between 110.65 and 111.85. The range top is the first resistance level before 100 DMA and the broken 2013 - 2014 trendline. 109.75 - 110.25 shall hold in case of a deeper pullback.

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