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USDJPY Consolidation Around Key 110 Level Near Complete

The USDJPY is consolidating for a 2nd straight day, digesting the climb this week back above the psychologically key 110 whole figure level. Significantly, the USDJPY appears to have halted the month and a half of healthy profittaking from the fresh 2021 high in early July. Reclaiming this week's high is moderately likely before the weekend, with high odds for the USDJPY forming a higher August high versus the July high. Regardless, bulls should be prepared for a bit of volatility today following the 830am EST US PPI data. Besides the weekly MACD which still slopes slightly down, the weekly and daily RSI, Stochastics and MACD are bottomish or consolidating recent gains. I am looking to go long in the green zone (of the daily chart), targeting the red zone for Wednesday. The amber/yellow zone is where I might place a stop if I was a swing trader (although in my personal account with which I seldom hold overnight I sometimes set my stops tighter).

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