USD/JPY consolidates above 200 week ma, Trump effect stalling?

Currently, USD/JPY is trading at 108.94, down -0.22% on the day, having posted a daily high at 109.28 and low at 108.88.

USD/JPY has met fresh highs this week at 109.33 on the market dumping bonds causing a spike in yields, however US 10yr treasury yields overnight consolidated the earlier gains, ranging between 2.18% and 2.24% as market drop the Trump hysteria for a breather while pondering on the next move ahead of the Fed in December. 

Wall Street: closing higher making hay while the sun shines

"The Fed funds futures were steady, implying a 94% chance of a rate hike in December," suggested analysts at Westpac. Meanwhile, analysts at Bank of Tokyo Mitsubishi argued that the dollar looks quite rich at these levels given the degree of uncertainty that lies ahead. "It is also worth remembering that a steeper UST bond yield curve will encourage greater hedged inflows from abroad that will help cap yields while the flow itself fails to support the dollar." Yellen testifies this week to the Joint Economic Committee of Congress and we might get a look in on the FOMC's thinking. 

Market wrap: Trump effect stalling - Westpac

With spot trading at 108.94, just above the 200 week ma at 108.48,  we can see next resistance ahead at 109.07 (Daily Classic R1), 109.18 (Daily Open), 109.18 (Monthly High), 109.18 (Weekly High) and 109.28 (Daily High). Support below can be found at 108.88 (Daily Low), 108.74 (Hourly 20 EMA), 108.73 (Weekly Classic R1), 107.89 (Daily Classic PP) and 107.75 (Yesterday's Low).