USD/JPY has exceeded the June highs, bulls in control

• FOMC minutes this week and Federal Reserve governor will be the highlights.
• Short-term bullish stance according to the 4-hours chart, but also keep eye on US CPI data.

USD/JPY has been trading higher in the opening hour of Tokyo, extending its gains from the late June 106.78 bottom's rising trend to a fresh high in July of 108.89 as Asia breaks the New York session high of 108.79 on the close. The move has exceeded the June highs. The Dollar is gaining traction as investors continue to dial down the expectations of an aggressive rate cut from the Federal Reserve this month. Markets will be looking for clues from the FOMC minutes this week and in Federal Reserve governor, Powell's, comments when he testifies to Congress for two-days 

"The US data calendar is worth noting but unlikely to move markets ahead of Fed chair Powell’s testimony by to Congress Wed-Thu. The May JOLTS survey is obviously not as timely as the payrolls data but provides an update on details such as job vacancies by industry and the rate at which workers quit their jobs," analysts at Westpac explained, adding, "Fed Chair Powell delivers opening remarks (15 min) via video at the Boston Fed’s stress testing conference where Governor Quarles is also due to present the keynote speech. Other Fedspeak involves regional presidents Bullard and Bostic at the OMFIF conference at Washington University. "

USD/JPY levels

Valeria Bednarik, the Chief analyst at FXStreet explained that the pair maintains a short-term bullish stance according to the 4 hours chart:

 "It has recovered above the 200 SMA, now also trading above its previous weekly high. The 20 SMA advances above the 100 SMA, both below the larger media, indicating bulls retain control. Technical indicators consolidate at overbought levels, far from signalling upward exhaustion, but rather reflecting the limited intraday volatility."