USD/JPY rises above 111.50 to weekly highs

The greenback gained momentum during the American session and rose across the board. USD/JPY broke above 111.50 and reached at 111.64, the highest level since March 22. It is trading at 111.54/58,  up more than 50 pips, headed toward the highest close in a week. 

Yields and Wall Street up 

Equity prices in Wall Street are trading near daily highs. The Dow Jones is up 0.30% at 20,720 and the Nasdaq gains 0.25%. The bond market is also supporting the bullish bias in the pair. The US 10-year yield rose from 2.385% to 2.416%. 

Economic data released earlier showed that the US economy expanded at a 2.1% annualized rate during the fourth quarter. The number was above expectations and it represents an upward correction from the 1.9% of the previous report. On the negative front, initial jobless claims fell, but less-than-expected to 258.000. 

US: Real GDP increased at an annual rate of 2.1% in the fourth quarter of 2016

US: Initial jobless claims fell less than expected

Markets reacted momentarily to an interview of US President Trump, particularity when he said that they were studying ways to penalize currency manipulators. 

USD/JPY technical levels 

On the upside, potential obstacles could be seen at 112.00 (psychological), 112.50/55 (Jan 18 & 24 low) and 112.90 (last week high). While on the opposite direction, support might lie at 111.30 (Mar 29 high), 110.70  (Mar 29 low) and 110.10 (Mar 27 low).