USD/JPY: capped below 110.00, but in positive territory above the 200 dma

Currently, USD/JPY is trading at 109.34, up 0.15% on the day, having posted a daily high at 109.77 and low at 108.77.

USD’s mature-looking secular bull trend to moderate in late 2017 - Scotiabank

USD/JPY has been capped below the 110 handle and moves into a consolidation phase after the strong Trump rally from 101.20 support area last week.

Lee Hardman, Currency analyst at Bank of Tokyo Mitsubishi explained ,"Stronger GDP provides further cheer for the BoJ. The greater initial focus on the potential for looser US fiscal policy and tighter Fed policy has weighed heavily on the yen resulting in USD/JPY closing above its 200- day moving average at around 106.50 for the first time since late last year."

"The BoJ is optimistic that above trend growth will continue in the coming fiscal year supported by fiscal stimulus. The positive economic developments could become more negative for the yen if evidence started to emerge that underlying inflation pressures were picking up," explained Hardman further on his outlook. 

USD/JPY levels

Spot is presently trading at 109.34, and next resistance can be seen at 109.35 (Yesterday's High), 109.77 (Daily Classic R1), 109.77 (Daily High), 110.36 (Daily Classic R2) and 110.73 (Weekly Classic R2). Next support to the downside can be found at 109.25 (Hourly 20 EMA), 109.18 (Daily Open), 109.18 (Monthly High), 109.18 (Weekly High) and 108.77 (Daily Low).