USD/JPY: Hourly downcycle context faces macro bids

The pair trades vulnerable at an area of macro interest circa 112.00, where sizeable bids are expected.

The market structure in correlated assets such as the SP500 -0.35% (hourly downcyle), US 30yr bond yield (hourly downcycle) and the recovery in the DXY 0.10% (still within hourly downcycle but far from lows) does not bode well for Yen shorts.

A downward trendline still commands prices lower, with risks of a range breakout into a fresh cycle low away from the established range increasing.

The significant pick-up in tick volume in the last 3 days vindicates the notion that the level around 112.00 is a major point of interest to add into longs by macro accounts.