USD/JPY: Bulls marching towards June highs on Yellen

The bulls extend their control after Yellen-led extensive rally, now pushing USD/JPY further into the green zone, in a bid to test fresh multi-month highs on 110 handle.

USD/JPY supported above 5-DMA at 108.51

The USD bulls gather significant strength over the last hour, after a brief consolidation mode, with the USD/JPY pair now targeting June 2016 highs reached at 110.85 amid persistent strength in the US treasury yields, which keeps the US dollar strongly bid.

Markets continue to cheer optimistic testimony from the Fed Chair Yellen delivered yesterday, when she advocated a rate hike relatively sooner than later and drove the US dollar through the roof versus its main competitors.

While BOJ’s announcement on buying unlimited JGBs also continue to weigh down on the yen, helping push USD/JPY to fresh five-month highs. The major is last seen exchanging hands at a new five-month high of 110.68, up +0.50% on the day.

All eyes now remain on the Fedspeaks amid a lack of relevant fundamental drivers on the cards from both the US and Japan today.

USD/JPY Technical levels to watch 

In terms of technicals , the immediate resistance is located at 110.85 (June high). A break above the last, the major could test 111 (zero figure) and 111.30 (daily R2) beyond the last. While to the downside, the immediate support is seen at 110 (zero figure) next at 109.61 (daily pivot) and below that at 109.45 (5-DMA).

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