USD/JPY analysis: next relevant resistance around 115.90
|USD/JPY Current price: 115.28
The USD/JPY pair jumped to 115.61, entering positive territory for the first time this week, as the greenback edged higher at the beginning of the day, helped by FED's Yellen, who offered some unexpected hawkish comments at a speech in San Francisco. Mrs. Yellen warned about the risk of waiting too long before rising rates again on accelerating inflation, while expressed the willingness to raise rates "a few times a year" until reaching what the Central Bank considers a long-run neutral rate of 3%, by 2019. Further supporting the rally in the pair was a recovery in US yields, as the 10-year note benchmark advanced 10 basis points to 2.49% after strong US data supported Yellen's wording. The sudden turned around in the pair has put it back into bullish territory, moreover as the price is back below the 23.6% retracement of its latest bullish run, after nearing the 38.2% retracement of the same rally earlier this week. In the short term, the upward potential is now being limited by a bearish 100 SMA in the 4 hours chart at 115.80, the level to surpass to confirm additional gains this Friday. Technical indicators in the mentioned chart accompany the bullish perspective, barely losing upward strength near overbought readings.
Support levels: 115.10 114.70 114.30
Resistance levels: 115.50 115.90 116.35
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.