USD/JPY consolidates at 7-month highs

USD/JPY is rising for the third day in a row and is consolidating near 7-month highs. On a quiet American session, the pair rose back toward daily highs and it was hovering above 113.30, headed toward the highest daily close since March 28. 

Price action remains limited in the forex market, with most pairs moving in minor ranges amid a holiday in the US. Dow Jones futures closed at record highs while US bond yields rose marginally. Tomorrow is also expected to be a quiet session, with no economic reports in the US to be released and with an early close in the bond market. 

Technical outlook 

The pair continues to move with a clear bullish bias. Technical indicators show overbought reading but greenback still remains strong. The next medium-term resistance to the upside could be seen around 114.00 followed by 115.50/80. 

On the downside, 111.40 and 110.50 are relevant support levels. Any retreat limited above 110.50, is likely to be considered as a normal correction. 

To learn more about this topic, check our video analysis.

USDJPY from Tip TV Productions on Vimeo.