USD/JPY rallies hard on Yellen's hawkishness, up 1.34% on the day at 114.15

Currently, USD/JPY is trading at 114.15, up 1.34% on the day, having posted a daily high at 114.18 and low at 112.57.

USD/JPY has rallied through the 14 handle on broad based dollar demand as Yellen's speech comes across slightly hawkish, with gold approaching 1,200 and the yen sent back 120 pips since the US session open. The theme around Central Bank divergence is back in focus. 

Fed's Beige Book: Majority of Fed districts described labor markets as tight

 We now await Trump's inauguration as the next catalyst after today's balanced Beige Book and US Dec CPI that matched expectations with the headline rate rising 0.3% in the month while the core rate rose 0.2%.

Fed's Yellen expects rates to be close to longer-run neutral rate of 3 pct by end of 2019

USD/JPY levels

Current price is 114.16, with resistance ahead at 114.18 (Daily High), 114.31 (Yesterday's High), 114.88 (Daily Classic R2), 114.94 (Hourly 200 SMA) and 115.30 (Weekly Classic PP). Next support to the downside can be found at 114.14 (YTD Low), 113.92 (Hourly 100 SMA), 113.77 (Daily Classic R1), 113.34 (Hourly 20 EMA) and 113.20 (Daily Classic PP).