USD/JPY analysis: break above 114.00 supports longer term gains

Valeria Bednarik FXStreet

USD/JPY Current price: 114.19

The USD/JPY pair rallied up to 114.53, 2 pips shy of March high of 114.55, as the dollar advanced on stronger-than-expected employment figures, whilst US stocks resumed their rally on the back of rising oil prices. Further supporting the pair were US bond yields that rose by the most since the US Presidential election, with the 30-year Treasury yield up to 3.04% and the 10-year note benchmark up to 2.38% by midday in New York. The pair heads into the Asian session above the 114.00 level, and the upward potential remains intact in the short term, given that in the 1 hour chart, technical indicators have partially corrected extreme overbought readings before resuming their advances, while the price skyrocketed above its 100 and 200 SMAs. In the 4 hours chart, technical indicators are losing upward strength, but holding near overbought territory, while moving averages have accelerated their advances below the current level. More relevant, the pair has broken above 114.00, the 23.6% retracement of the 2011/15 rally, and the bullish potential will persists as long as the price remains above it.

Support levels: 114.00 113.65 113.20

Resistance levels: 114.55 114.90 115.40

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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