The U.S dollar continues to trade around the 107.00 handle against the Japanese yen, as price-action consolidates ahead of new Federal Reserve Chair Powell’s testimony to U.S Congress. The USDJPY pair has remained largely range-bound between the 106.60 to 107.30 technical levels, with traders awaiting a clear directional trend to emerge. An upbeat assessment of U.S inflation and the global economy from Chair Powell today, may lead to a strengthening of the U.S dollar index.
The USDJPY is only bullish above the key 107.30 level, the pair may then see a further advancement towards the 107.61 and 108.16 levels.
Should price-action on the USDJPY pair move below the key 106.60 level, further weakness towards the 106.18 and 105.90 levels would then appear likely.
