USD/JPY On Hold

USD/JPY's latest and awesome rally appears to have come to a hold as price lost steam once it reached just slightly below 119.00. The pair reacted dovishly when it went as high as 118.65 and has been consolidating around that level eversince. 

Main trend on the long-term remains strongly bullish, but the effect by the Trump wave seems to have worn off and now if USD bulls want to continue their marching North they would need something strong othwerise bears have the advantage caused by low liquidity and weak bull support. 

Expectations are that USD/JPY will continue trading in the range between 116-something to 118 until years end as market participants are away to spend time with families taking the volatility with them. 

However, we still have some important news such as Consumer Confidence and Advance Retail Sales scheduled for next week that may cause unexpected rapid moves to either side.

Chart: USD/JPY D1