Global macro overview for 27/05/2016:

Japan's Consumer Price Index dropped for a second straight month in April to the level of -0.3% ( -0.4% expected; -0.1% prior). The national core consumer prices, which exclude fresh food, dropped 0.3% in April from a year earlier, equaling the multi-year low hit in March. In conclusion, deflationary pressures may strengthen in the months ahead despite Bank of Japan Governor Haruhiko Kuroda's struggle to tame inflation with record asset purchases and negative interest rates. The lack of price growth will intensify pressure on the Bank of Japan to consider further monetary stimulus.

Let's now take a look at the USD/JPY technical picture in the daily time frame. The golden trend line is working as a charm so far, capping any upside rally above the 110.62 technical resistance level. As long as this trend line is not violated bears are in full control over this market.