USD/JPY consolidating around 114.00

USD/JPY continues to trade in a range between 114.15 and 113.70, marginally higher for the day on the back of a modest rally of the US dollar in the market. The pair remains near multi-month highs ahead of next week Federal Reserve meeting. 

Overall, volatility remained limited across financial markets on Tuesday. In the bond market, US yields were little changed. The 10-year was hovering at 2.39%. In Wall Street, the Dow Jones was up 0.10% at 19,233 and the S&P 500 gained 0.22%. 

In the US, economic data included today the release of the factory orders report that showed an increase of 2.7% in October (above the 2.6% expected). 

USD/JPY outlook 

The pair continues to hold a bullish bias. The rally of the pair found resistance below 115.00. Greenback needs to break and hold above 115.00 to open the doors to more gains. 

To the downside, the key short-term support could be seen around 113.30/40, where an uptrend line currently stands. A break of that line could signal further correction ahead, probably exposing the 111.30/50 support.