USD/JPY: choppy in Tokyo, targets break of 5 min 200 sma at 104.51

USD/JPY was  bid in the open with a target of the 5 min 200 sma at 104.51 at time of writing, located just above session highs of 105.46, but lacks conviction. 

The dollar was supported on good data and with US 10yr treasury yields rising from 1.48% to 1.55%, 2yr yields from 0.66% to 0.70%. "Market pricing of the Fed funds rate firmed, implying a 20% chance of a rate hike in September, a 40% chance by December, and 95% by Dec 2017," explained analysts at Westpac. Meanwhile, the Yen is otherwise under pressure on the basis that markets are expecting further easing in respect to the authority's concerns over growth and inflation in Japan. For the day ahead, China data could be a mover while the US CPI and retail sales will be a potential catalyst in the Us session. 

 USD/JPY levels

 "The technical outlook favors the upside, as in the 1 hour chart, the Momentum indicator heads north within positive territory after erasing early overbought conditions," explained Valeria Bednarik, chief analyst at FXStreet adding, "In the 4 hours chart, the Momentum heads  well above its mid-line, but the RSI indicator remains within overbought levels, as the price holds above its moving averages. An extension beyond the mentioned daily high, should see the pair extending its rally, with a major bullish target at 107.80, the 100 DMA."