USD/JPY is bid in the open, despite the volatility overnight and has tested 104.80 in the open of Tokyo. USD/JPY strengthened overnight on the BoJ and has been on the recovery from lows of 104.21. Markets are prone to remain volatile with the ongoing collapse in global yields that have been fuelled by a mixture of fear and softer than expected economic data, as noted by analysts at ANZ, potentially continuing to support the Yen."On a daily basis, major bond markets are seeing yields fall to historic lows while more of the core markets are taking yields through the zero lower bound. What was once seen as a curiosity is now fast becoming the norm. While it may seem appealing for borrowers, it is creating significant issues for investors and liability managers. On the data front, while some aspects are showing positive signs, others are slowing, and this is creating a conundrum for central banks and policymakers."USD/JPY levelsTechnically, Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart shows that the pair entered in a consolidative stage, "But also that the risk remains towards the downside, as the technical indicators have lost upward strength after erasing extreme oversold readings, while the 100 SMA has crossed below the 200 SMA far above the current level. The immediate support comes at 103.90, with a break below it favoring a retest of the daily low, and even an extension towards the 103.00 region."