USD/JPY stalls post-Yellen rally at 114.50

The bulls take a breather from Yellen’s hawkish comments-led recent upsurge, triggering a retreat in USD/JPY from fresh two-week tops reached at 114.51 earlier on the day. Fed Chair Yellen’s hawkish outlook on the interest rates restored confidence in the market on the US economic growth prospects, especially in wake of Trump’s administration policies.

The spot is last seen exchanging hands around 114.30, correcting lower in a bid to test the next support located near 114/113.90 region. The latest leg down in the major is largely on the back of fresh selling seen in the treasury yields, which dragged the greenback lower across the board, as investors lock-in gains heading into a series of crucial economic data from the US lined up for release in the NA session today.

USD/JPY Technical levels to watch 

The major finds immediate resistance at 114.51 (post-Yellen high). A break above the last, the major could test 114.77 (daily R1) and 114.96 (50-DMA) beyond the last. While to the downside, the immediate support is seen at 113.99/90 (daily pivot/ 5-DMA) next at 113.41 (20-DMA) and below that at 113.15 (10-DMA).