USD/JPY: going nowhere fast in Tokyo, but eyes on 113.20 for a break higher?

Currently, USD/JPY is trading at 112.77, down 0.00% on the day, having posted a daily high at 112.84 and low at 112.64.

Overnight, US 10yr yields initially extended yesterday’s rise to 2.37% but reversed during the London morning to 2.32% and then consolidated. Fed fund futures yields continued to price the chance of a December rate hike at 77%.

Wall Street finishes at record highs on upbeat data

USD/JPY closed NY +0.21% but still unable to hold rallies above the 113 handle and was only able to manage a score of 113.05 as the high despite a strong performance on Wall Street yet again that refused to allow the Las Vegas shootings get in the way stopping only for a minutes silence. 

US PMIs were also highly impressive: Key US data events reviewed - Nomura

Japan’s quarterly Tankan business sentiment survey was significant as it surged to its highest in a decade, with the main index for Q3 up to 22 from previous 17, a sign that the economic recovery is expanding.

Forex today: firm data signals supporting the case for a Fed hike in December

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that the pair is in a consolidative phase with the bullish trend holding in the background. "In the 4 hours chart, technical indicators continue to be stuck around their mid-lines, but the price remains above a strongly bullish 100 SMA, which now advanced up to the 111.60 region. The pair topped at 113.25 last week, the level to surpass to confirm another leg higher, which can extend up to the critical 114.40 region during the following sessions," Valeria argued.