USD/JPY consolidates daily gains, keeps bullish tone

USD/JPY pulled back after the beginning of the American session and dropped to 112.58. The pair found support above the 20-hour moving average and rose back above 113.00. 

It continues to hold a bullish bias for the day, in line with the dominant trend. Currently, it trades at 112.90, up 0.70% for the day, supported by US economic data (better-than-expected 3Q revision and consumer confidence data), rising equity prices in Wall Street (Dow Jones 0.15%) and gains in US bond yields (10-year at 2.34%). 

Today USD/JPY is resuming the upside after a 2-day correction from Friday’s highs at 113.92 (8-month high) to 111.32 (Nov 28 low). Greenback is back at the same level it closed on Friday. 

Levels to watch

To the upside, resistance levels area seen at 113.30 (daily high), 113.55 (Nov 24 high) and 114.00 (psychological). On the flip side, support could be located at 112.55 (20-hour moving average), 112.25 (Asian session high)  and 111.30/35 (Nov 28 low / Nov 22 high).