FXStreet (Córdoba) - The USD/JPY finally filled the weekly opening gap and slid back below the 104.00 mark after being rejected from fresh 7-month highs.

The USD/JPY found resistance at the 104.25 area and began to move lower, but with the subsequent pullback was contained by 103.85, the pair is back hovering around the psychological level. At time of writing, the USD/JPY is trading at 104.03, up 0.1% on the day.

The Chicago Fed index of national activity rose slightly in July (0.39 vs 0.21 prev) but had little impact on the USD, which is taking a breather after last sessions' rally.

“Having rallied briskly in early Asian trade, the dollar is consolidation mode early in the US. More monetary action from the ECB and BOJ is expected but we are probably some months away from the actual launch of new policy”, said Jamie Coleman, editor at FXBeat. “The dollar should retain a firm footing but rallies will not be in a straight line. They rarely are”.

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