USD/JPY consolidates just below six-year highs of 119.41. In the view of economists at Citibank, a rise above the 120 level is likely, with the next major resistance not seen until 125.80.

Bullish bias on USD/JPY over the coming weeks

“After the break of December 2016 high of 118.60, the next major resistance is not until the 2015 high of around 125.80. While not expecting the pair to rise that far, it is likely USD/JPY continues its medium-term uptrend, so a rise above 120 is likely in the next few weeks." 

"While BoJ is looking increasingly left behind with rate differentials widenings, we note the renewed bounce in oil prices may be another negative for JPY. Japan’s current account should suffer as JPY-denominated oil price has jumped sharply and holds a tight correlation with monthly import costs, which are also set to rise."