USD/JPY consolidates strong gains near 3-week tops, just below mid-110.00s

   •  Positive Trump-Kim summit weighs on JPY's safe-haven demand.
   •  A goodish pickup in the USD demand provides an additional boost.
   •  Investors now eye US CPI print for fresh impetus ahead of the Fed.

The USD/JPY pair finally moved past the very important 200-day SMA hurdle and now seems to have entered a bullish consolidation phase just below mid-110.00s, or near 3-week tops.

Positive headlines coming out of the closely-watched US-North Korea summit kept weighing on the Japanese Yen's safe-haven appeal and turned out to be one of the key factors helping the pair to finally break through a technically important moving average. 

This coupled with a goodish pickup in the US Dollar demand, supported by a mildly positive tone around the US Treasury bond yields, remained supportive of the strong up-move for the second straight session.

Meanwhile, today's release of better-than-expected Japanese PPI print and Tertiary Industry Activity index went past unnoticed, with fading safe-haven demand turning out to be an exclusive driver of the pair's ongoing bullish momentum to the highest level since May 23rd.

Moving ahead, investors on Tuesday will also confront the release of US consumer inflation figures, which along with the latest FOMC monetary policy update will help determine the pair's next leg of directional move.

Technical outlook

Omkar Godbole, Analyst and Editor at FXStreet writes, “the probability of a move higher to 111.20 would rise if the pair holds above the 200-day MA after the conclusion of Trump-Kim Summit.”

“On the other hand, a failure to hold above the 200-day MA would shift risk in favor of a drop to 109.20 (June 8 low),” he added further.