USD/JPY analysis: next relevant resistance around 115.90

Valeria Bednarik FXStreet

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

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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