USD/JPY slipped 0.2% Monday, retreating from recent highs as risk-off sentiment boosted the yen. The pair found support at 156.92 near the 21-day moving average as falling U.S. equities and rising yen haven demand weighed on dollar strength. Anticipation for BOJ Deputy Governor Himino’s speech and press conference has added to yen buying, as markets speculate on a potential 25-basis point rate hike at the January policy meeting. With implied odds of a hike now slightly above 50%, Himino’s remarks could influence near-term yen sentiment.

Technicals suggest USD/JPY is at a critical juncture. Support at 156.92 is reinforced by the December 25 low, with further levels at 156.02 (December 31 low) and 155.97 (December 20 low). A close below 155.97 would confirm a bearish breakdown, setting up a test of the November 6 high at 154.70. On the upside, resistance lies at 158.09 (December 26 high) and 158.88 (post-U.S. payrolls high). A move above 158.09 would negate the bearish scenario and signal renewed bullish momentum.

Upcoming BOJ commentary and Japanese economic data will likely drive yen flows. Deputy Governor Himino’s hawkish tone or hints at a January rate hike could reinforce yen strength, especially as global risk sentiment remains fragile. Additionally, Japan’s lending, current account, and trade data could further shape market expectations. If USD/JPY fails to hold above 155.97, bears could gain control, while a break above 158.09 would indicate a return to bullish dominance, keeping the pair range-bound for now.