After rallying to 112.40 on April 24th, the USDJPY pair failed to mount a meaningful assault on descending resistance around the 112.75 level, and has since declined 250 points. The negative momentum has been slightly surprising for Dollar Bulls that spend considerable time and resources trying to force a test higher. Slightly surprising though, was the gap down at the start of the new session this week. It was only 50 points but it’s been plenty to cause some bailing-out of long positions. We’d normally expect to see the gap filled sooner rather than later in cases like this, but there simply doesn’t appear to be sufficient appetite for that in the current conditions. Dollar/Yen continues to look vulnerable and with figures from China rounding off the week it’s unlikely to get much support from that quarter. We’d expect a dip below 110 but would also anticipate that some buying orders would emerge around the 109.70 level. What we’d like to see here is a period of profit-taking and consolidation as the market pauses to take stock before trying to force its next move.