USD/JPY sticking close to week's opening prices on thin volumes
- The Yen starts the week off quiet with Japanese markets dark for the long weekend.
- The pair's first challenge this week will be the Core Consumption Index in the US session.
The USD/JPY pair is trading on the high side of Monday's action so far, testing into 109.15, but solid movement is looking unlikely on holiday volumes.
Japan markets are out for a long weekend to celebrate the Showa holiday, and thinned market volumes are pulling wind out of the USD/JPY's sails after closing higher for five consecutive weeks.
The early week sees little impactful news for the JPY side, with only the Nikkei Manufacturing PMI on Tuesday at 00:30 GMT (expected 52.6, prev. 53.3), while the USD side sees the Core Personal Consumption Index on Monday at 12:30 GMT (forecast 1.8%, prev. 1.6%).
Economic growth has been picking up within the US economy at a noticeable pace, and the likelihood of further rate hikes is propping up the US Dollar against the broader FX market.
USD/JPY levels to watch
FXStreet's own Valeria Bednarik on why the USD/JPY's next move is likely to be a correction into Friday's lows before continuing the major bull trend: "In the 4 hours chart, the price holds far above bullish moving averages, while the RSI indicator bounced from its mid-line, albeit the Momentum entered negative territory with a downward slope, all of which maintains the bullish trend in place, but suggest a possible bearish correction on a break below 108.95, Friday's low and the immediate support."