USD/JPY: bulls in charge on 104 handle - eyes on May low at 105.55

USD/JPY is currently stable in the Tokyo open after an unchanged day on Wall Street in a mixed dollar environment.

US Stocks consolidate gains after Yellen, modestly lower for the week

Wall Street closed flat last week while the dollar ended mixed on positive data, but a dovish rhetoric from Yellen. However, USD/JPY has been making tracks to the upside still, extending the October rally above the 103 handle while the greenback finds fourth quarter demand as we approach the US elections next month with Clinton marginally favoured supporting a positive outlook for Wall Street and the US dollar. 

Fed's Yellen: "High pressure" policy may be needed for recovery

At the same time, the market's expectations for the Fed to hike interest rates has increased for a December hike. Meanwhile, Yen garners support on risk off markets, although the divergence between the BoJ and Fed remains compelling. For the week ahead, we have Fed speakers and the last Presidential debate coming up. 

USD/JPY levels

USD/JPY has made a high today at the September high and on further advances, the May low at 105.55 comes into view again. "Slips should find support between the 102.79 September 21 high and the 55 day moving average at 101.90, " suggested analysts at Commerbank, adding, "Longer term we suspect that the market is basing and target the 107.49 July high and the 200 day ma at 107.94 at this stage."