USD/JPY consolidating above 111.50 handle

USD/JPY was consolidating above the midpoint of the 111 handle recovering two big figures higher (since 18th March) to overnight offers at the 200 smoothed sma. However, the FOMC minutes dented the dollar and yields dropped. 

With the spectrum of Trump politics and concerns in the background over the Fed's neutral/hawkish stance, analysts at Brown Brothers Harriman noted that the next support to the downside in DXY at 96.45 is the 61.8% retracement of the rally from last May when it slipped below 92.00:

"A bit below there is the low from the November election near 95.90.  A break would bring the minimum measuring objective of the possible head and shoulders top pattern (carved out between November 2016 and March 2017, which we were sceptical of), near 94.80 into view." 

USD/JPY's spread is a driving factor with the with yields unable to gather pace above and stay above the psychological 2.3% level in the 10-years. 

USD/JPY levels

In a tight range in Tokyo today, technically, the advance was contained by the 38.2% retracement of the latest bullish run around 112.00, explained Valeria Bednarik, chief analyst at FXStreet." Technical indicators have turned lower right above their mid-lines, whilst the price remains trapped between horizontal 100 and 200 SMAs, lacking directional strength in the short term."