Chart - Courtesy Trading View
USD/JPY was trading 0.24% lower on the day at 130.51 at around 06:55 GMT.
The pair is consolidating previous week's gains, trades with a bullish bias.
The odds favoring the Fed’s 0.50% rate hike in September recently jumped to 75% versus 35% a week ago.
Focus now on this week’s US Consumer Price Index (CPI) data. Buyers turn cautious as any disappointment will dent the Fed rate hike expectations.
Technical indicators point to further gains in the pair. GMMA indicator shows major and minor trend are strongly bullish.
Pullback has bounced off 50-DMA support. Price action is above cloud and Chikou span is biased higher.
Major Support Levels:
S1: 130.00 (5-DMA)
S2: 128.75 (21-EMA)
Major Resistance Levels:
R1: 131.22 (Upper BB)
R2: 131.34 (May high)
Summary: USD/JPY poised for further gains. Scope for fresh yearly highs above 131.34 .
