USD/JPY: consolidates below five month highs at the 111 handle

Currently, USD/JPY is trading at 111.00, down -0.05% on the day, having posted a daily high at 111.18 and low at 110.92.

If there is dollar weakness, it will be brief - Westpac

USD/JPY is steady in the open of Tokyo, consolidating close to five-month highs as the market takes a breather from the Trump hysteria and starts to focus on the Fed in December. 

"The pair remains extremely overbought according to daily technical readings, with the RSI heading modestly higher around 80 in the daily chart, but at this point, there are no signs that the pair may change course, " noted Valeria Bednarik, chief analyst at FXStreet. 

Today will bring the FOMC minutes and durable goods orders as the scheduled highlights for the major, while otherwise, we are in for a potentially quiet Asian session.

"The FOMC minutes from the meeting earlier this month will be released.  Regardless of the election outcome, the minutes will likely reveal that the Fed was poised to hike rates, with "most participants" seeing a move shortly," suggested analysts at Brown Brothers Harriman.

Don't believe the hype, and get real: the Fed will not hike in December and here is why ...

USD/JPY levels

Valeria Bednarik, chief analyst at FXStreet explained that in the 4 hours chart, technical indicators have turned lower within positive territory, while the 100 SMA has extended its advance far below the current level, converging now with a major Fibonacci level around 106.60. "A break above 111.44, May's monthly high, is now required to confirm a bullish extension that can extend up to the 114.00 region."

Meanwhile, with spot trading at 111.01, we can see next resistance ahead at 111.06 (Daily Open), 111.06 (Monthly High), 111.06 (Weekly High), 111.18 (Daily High) and 111.37 (Yesterday's High). Support below can be found at 111.00 (Hourly 20 EMA), 110.96 (Daily Classic PP), 110.92 (Daily Low), 110.54 (Daily Classic S1) and 110.35 (Hourly 100 SMA).