USD/JPY Consolidates

Consolidation is viewed as the decision period in any market. Although short term, the consolidation in the USD/JPY indicates that the pair is looking both ways and has not yet decided where to go from here.

The resistance level met at 114.60 was met with favor from the bear camp who sold the pair to a low of 113.63. The pair is now trading at 113.79, just slightly higher than the lowest low. If the indecision persists, we could see the pair gravitate between 114.00 and 113.70.

This week is light on news which could suggest that the consolidation will continue. No major news is sometimes good news given that the healthy behavior of a market is enough to keep the direction going.

On the downside, first support zone is seen at 111.66, on the upside, first resistance zone is the latest high at 114.60.

Chart: USD/JPY H4