USD/JPY bulls pitching around 104 on higher levels of support

USD/JPY is currently in consolidation between 104.37 highs vs 103.92.

USD/JPY bulls have been finding the 104 handle a tough area to hold and supply has capped efforts through the mid-point of the handle. However, the sell-offs are less aggressive and there has been a higher level of support just below the 104 handle. In respect of fundamentals, heads turned back to the US economy and also Yellen who spoke in Friday's closing session last week. Yellen has, in so many other words, said monetary policy is on hold, yet the dollar remained mixed on relatively positive US data releases. 

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USD/JPY levels

USD/JPY bulls remain with eyes on the September high at 104.32 and the May low at 105.55. "We suspect that this will hold the initial test as we note the weekly imoku 2 lies 105.45 (cloud resistance)," explained analysts at Commerzbank.

Meanwhile, with spot trading at 103.96, we can see next resistance ahead at 104.08 (Daily Classic PP), 104.10 (Hourly 20 EMA), 104.20 (Monthly High), 104.20 (Weekly High) and 104.36 (Daily Open). Support below can be found at 103.92 (Daily Low), 103.90 (Hourly 100 SMA), 103.87 (Weekly Classic PP), 103.70 (Hourly 200 SMA) and 103.67 (Daily Classic S1).