USD/JPY is consolidating having been trading with a bullish bias within the 110.81 ascending channel formed on 17th March and has made consistently new daily highs until yesterday's business high at 113.67. However, this streak of seven-day gains might end here as markets take a step back and ponder in respect of the US economy and its inflation target in respect of the timings of continued incremental rate hikes. The weakness in the greenback overnight comes in a mixed outlook in respect to the US economy and recently hawkish comments from the various Fed members speaking last week after a dovish tone that came from the FOMC meeting and Yellen's presser. Today, the inflation picture was even more muddled on the back of the mixed PCE result. We will now await Yellen speaking later today in New York at the Economic Club of New York at 12:20 p.m. Eastern. The Fed chairwomen is expected to reinforce a message of caution which could lead to further downside in USD/JPY. USD/JPY levels USD/JPY targets the 50 day MA at 114.69 within a bullish set up. In the 4 hours chart, however, the technical indicators lack directional conviction, but remain within positive territory. "The pair has multiple intraday highs in the 113.70 region, which means only an acceleration beyond the level will favour additional gains up to the 114.45 price zone." On a correction of the recovery from the March 17 multi-year low, the pivot is located at 113.07 and S1 is at 112.82, S2 112.52 and S3 at 112.23. For more information, read our latest forex news.