USD/JPY has rallied at the start of the week with risk back on and the greenback unwinding elsewhere across the board, the Yen is the weakest performer, most notably vs sterling.

The week starts with the 'Bremain' camp leading in the polls and sterling up over 1.5% and GBP/JPY moving from 150.87 to 153.02 highs so far. USD/JPY struggles with near term resistance at 104.80 from lows of 104.40, an area of resistance since the 15th June recovery. 

Brexit: BMG phone poll has 'Remain' leading by over 7 points

We have Yellen coming up, but that could be over shadowed by the EUR referendum headlines and even on the 23rh/24th later this week. For today, we had Japan's trade balance data for May arrived with a deficit of 40.7bn yen vs the expected Y 70bn and prior Y823.2bn while exports showed the fastest fall since January of this year of -11.3% y/y. 

USD/JPY levels

Technically, Valeria Bednarik, chief analyst at FXStreet explained "the daily chart shows that the 100 DMA maintains a strong bearish slope far above the current level, whilst the technical indicators have lost downward strength, but remain within oversold territory, with no signs of changing course." Nearer term, the price is challenging the 20 sma on the 4hr sticks at 104.86 guarding 105.00 and 105.50/60 resistance.  103.80 is key support to the downside.

Mr. Yen: If yen breaks 100, intervention possible