We are currently long USDJPY and have seen the currency pair jump from around 107.2 over the past week to above 108 and we are looking for consolidation around the current level before USDJPY moves towards the Fibonacci level at around 108.9. This is predominantly due to market expectations that the FED will not cut rates as aggressively as previously with consensus expectation rising that the FED will cut rates by 25bps instead of 50 bps on the 31st of July. We therefore remain long and will look to start taking profit above the 108.9 Fibonacci level with a view towards USDJPY moving even higher if there is a shift in the FED's monetary policy and more confidence in the global economy.