USDJPY pushes toward highs of the recent consolidation zone

The recent consolidation highs are seen in the 114 area, and if the greenback jumps above it, we could see a quick rally toward the current cycle highs near 115.

US yields are rising today, supporting the bounce in the USDJPY pair; the US two-year yield still trades near its cycle highs in the 0.65 - 0.7% area, while the Fed is expected to deliver three rate hikes in the following year.

The support of the consolidation area is at 113.25, and as long as the greenback trades above it, the short-term outlook appears bullish. 

In case of a bearish breakdown, stop losses will be hit, likely dragging the pair toward 112.60.

Volatility could be lower heading into the Christmas Holidays as many traders are already off their desks and done for the year. Thus, liquidity is more inferior across the markets.