- USD/JPYbears eye a test of the trendline support.
- USD/JPY bulls look for a break of key dynamic resistance.
USD/JPY rallied on Monday but within a bearish structure on the charts. Nevertheless, the pair now consolidates ahead of key events on the US calendar this week, starting Tuesday. The May inflation rate on Tuesday will be a key focus and could shift the needle ahead of the Federal Reserve interest rate decision.
Trading could be quiet for the Asian and European day, however, as investors remain cautious ahead of several key policy decisions due this week, with the Federal Reserve expected to keep rates on hold for the first time since January 2022
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