USD/JPY: consolidates below 104 handle, 102.30 compelling

USD/JPY is currently consolidated in a quiet start to the week tucked in below the 104 handle.

The major is oscillating below the 104 handle after last week's bid in the yen that took the bulls down from 104.40 to 103.52 the low before a recovery that couldn't break back above 104.00.  USD/JPY has been in a wide range between 102.80 and 104.68 this month in a slightly progressive uptrend, but lacking conviction and a fade on rallies. 

"The dollar snapped a three-week advance against the yen and fell in four of last week's five sessions." noted analysts at Brown Brothers Harriman.

USD/JPY levels

"Slow stochastics are rolling over and currently the market is under pressure to ease back towards the base of the cloud at 102.30," argued analysts at Commerzbank, adding, "This is reinforced by the 55 day ma at 102.11. Above 104.63 targets the May low at 105.55.We suspect that this will hold the initial test as we note the weekly imoku 2 lies 105.45 (cloud resistance). Longer term we suspect that the market is basing and target the 107.49 July high and the 200 day ma at 107.73 at this stage."