USD/JPY consolidates above 110.00 mark, focus shifts to BoJ on Tuesday

• USD/JPY remains confined in a range above 110.00 round-figure mark.
• A slight cautious mood benefitted the JPY’s perceived safe-haven status.
• The mildly bid tone surrounding the USD continues to lend some support.

The USD/JPY pair remained confined in a narrow trading range above the key 110.00 psychological mark and consolidated the recent gains to multi-month tops.

A combination of diverging forces failed to provide any meaningful impetus on the first day of a new trading week and led to the pair's subdued/range-bound price action through the mid-European session.

Traders preferred to stay on the sidelines

As investors looked past the latest optimism over the long-awaited US-China trade deal, the prevailing cautious mood around equity markets benefitted the Japanese yen's perceived safe-haven status.

Meanwhile, the US dollar stood tall near oner-month tops and remained well supported by diminishing odds of any further rate cuts by the Fed, which turned out to be a key factor cushioning the downside.

The incoming US economic data have been fueling market expectations that the US economy will continue to expand and remained supportive of the recent USD appreciation over the past few weeks.

Investors, however, seemed reluctant to place any aggressive bets, rather preferred to wait on the sidelines amid a holiday in the US and ahead of the latest BoJ monetary policy update on Tuesday.

Technical levels to watch