• USD/JPY is currently trading at 111.54, trading in a range of between 111.43 and 111.57
• The yen rose from 111.70 to 111.28 before the dollar picked its self up overnight. 
• Eye son Brexit, EU/US trade wars kicking in as Sino/US risk fades out.

USD/JPY has been stuck in a range in the lower end of the 111 handle as the market takes a breather following last week's US nonfarm payrolls, but trades heavy on the back the US factory data from overnight, bringing up the recessionary fears once again.

Wall Street ends mixed with the DJIA leaning bearish, eyes on a break of 26000

Nevertheless, US stocks shrugged off the data and were on the whole positive overnight. As for the US 10yr treasury yield, it rose from 2.49% and 2.52% while the 2yr yield from 2.32% to 2.36% - Moreover, the chances of a Fed rate cut by December, implied by Fed fund futures, fell from 80% to 60%.

In Brexit news, May will meet with Merkel and Macron in Berlin and Paris today hoping to drum up support ahead of the EU Summit on Wednesday.

Meanwhile, just as the US looks to seal the deal with China, risk appetite faces a new set of noise coming from brewing trade tensions between Washington and the EU as the US looks to impose tariffs on EU products.. more on that here: US proposes tariffs on $11bn of EU products over Airbus subsidies - FT

USD/JPY levels

Valeria Bednarik, Chief Analyst at FXStreet explained that the pair offeres a short-term neutral stance in its 4 hours chart, as despite breaking below its 20 SMA, it remains near it which is now horizontal, while still above the larger ones:

"The Momentum indicator in the mentioned chart has turned flat around its 100 line, while the RSI hovers around its mid-line, now aiming higher, although not enough to confirm an upcoming recovery. However, bulls will remain in control as long as the price holds above 111.20, the 61.8% retracement of the March decline."