USD/JPY nudges a little lower ahead of European trading

It was a bit of a quick drop from 128.45 to 128.05 and this is likely to have been the trigger.

The pair is now back around 128.20 as buyers continue to keep a more bullish near-term bias for now i.e. holding above both the key hourly moving averages. The 100-hour moving average (red line) @ 127.96 will be a key support level to watch in reaffirming that, with a drop below the near-term level to open up a wider range to play with for the pair.
But in the context of the bigger picture, we're stuck in the 125.00 to 130.00 range as higher bond yields continue to underpin the pair and allow dip buyers to maintain their conviction for the time being.