USD/JPY: A phase of upside consolidation ahead of BOJ?

The USD/JPY pair remains confined in a tight range so far this session, failing every attempt to rise above stiff resistance located near 118.40 amid lack-luster trading activity seen around the US dollar versus its six major currencies.

USD/JPY awaits BOJ

The dollar-yen pair extends its consolidation phase into the European session, with the bulls managing to regain 118 handle and hit fresh daily highs at 118.43, before meeting fresh supply to now hover around 118.30, still up +0.10% on the day.

The major defends mild gains amid a phase of upside consolidation in the US dollar across the board, as the bulls take a breather after yesterday’s massive rally, as focus now shifts towards the BOJ monetary policy review due next Monday.

However, the spot may get influenced by the US housing data due later in the NA session, although the reaction will be limited as the main driver will continue to remain the USD dynamics.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 118.43 (daily high). A break above the last, the major could test 118.67 (10-month high) and 119 (psychological levels) beyond the last. While to the downside, the immediate support is seen at 117.96 (daily low) next at 117.19 (daily S1) and below that at 116.74 (5-DMA).