USD/JPY has entered bearish territory on a strong yen and is testing the previous weekly resistance of September 2014 commencing while at current levels on the 109.0 handle. Overnight, the USD/JPY dropped below the psychological 110.0 handle for a low of 109.33, the lowest since October 2014. Yen risks balanced to the upside - Scotiabank The Yen is resilient, despite the calling for easing at the BoJ and the recent gains, according to analysts at Scotiabank, "have been driven by sentiment on the back of a deterioration in the broader tone and risk appears balanced to the upside as we consider the widespread rise in FX volatility." In respect to the FOMC minutes, it is clear that the FOMC is prepared to move rates higher so long as the American economy stays on track and the global risks that are concerning do not impair the U.S. recovery. USD/JPY levels Valeria Bednarik, chief analyst at FXStreet explained that in the 4-hours chart, the technical indicators head sharply lower, also within extreme oversold territory, supporting some further declines towards the 109.00 level and below during the upcoming sessions. For the upside, 110.50 would be a short-term deal breaker bears, but the bearish bias should persist below 112.00 and the 20 dma at 112.3. For more information, read our latest forex news.