USD/JPY has been rallying very persistently since it cracked 111.00 but was able to stay above this key support area. As we can see in the 1H chart, is has made consistent higher lows and higher highs and is now trading above the 200-, 100-, and 50-hour simple moving averages (SMAs). The RSI has also tagged above 70 and held above 40, a sign of persistent bullish momentum in this time-frame. USD/JPY 1H Chart 3/28(click to enlarge) Near-term Consolidation: As the 3/28 US session began, USD/JPY was stalling under 113.70 and consolidating. Then around 8:30, there was US data on inflation and spending, both underwhelming. USD/JPY was already consolidating, but the data seemed to have accelerated the retreat. To sum up today's data: Americans are spending less and saving more. Inflation is still low.Consumers spend a little less, save a little more in February - Marketwatch.com (source: forexfactory.com) We should not read too much into today's data. The market should be focused on Friday's US Non-Farm Payroll Data. It might also pay some attention to Tuesday's Consumer Confidence data along with Yellen's little speech (don't expect any curve ball here), but I think the volatility will be contained within the session. The NFP however can be a mover that extends the reaction into the next week. Key Levels, Signs: If price can hold above 113 throughout the week, there is still upside risk. Around 113 is a support/resistance pivot area, reinforced by a rising trendline, especially if the 1H RSI is around 40. On the other hand, a break below 112.90 with the RSI breaking below 40 might be a sign that USD/JPY has lost its fuel, but does not necessarily suggest a bearish outlook. Now if price approaches 114-114.50, then I would expect some stronger resistance. This is the consolidation range resistance we have seen over the previous month or so.