USD/JPY: Bulls gather pace for further upside, near 110.65

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 making lower tops on hourly sticks

A brief phase of upside consolidation in the US dollar against its major competitors, has paused the rally in USD/JPY, with the bulls now taking a breather before a slew of Fedspeaks due later today, which will provide fresh insights on the US interest rates outlook, particularly after yesterday’s comments from Fed Chair Yellen almost confirmed a Fed rate hike next month.

Focus will also remain on the price-action behind the US dollar and treasury yields, as the European traders will hit their desks and react to the Yellen commentary. The major is last seen exchanging hands at 110.68, up +0.50% on the day, having moved-off five-month tops reached at 110.78 in early Asia.

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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