The USDJPY is consolidating just below the 200dma.

The USDJPY is just below the 200dma in a consolidation, which if broken could allow for an aggressive rally. However, also keep in mind we are consolidating near the 61.8% Fibonacci retracement level and are out of an ascending wedge which could weigh on prices. IN addition, the USDJPY stopped following the SPX higher which is typically a strong positive correlation. A break below 110.50 would be bearish for the pair.

Blake Morrow