USD/JPY above R1 on Yellen's comments

Currently, USD/JPY is trading at 114.24, up 0.50% on the day, having posted a daily high at 114.51 and low at 113.25.

USD/JPY might just have been given the green-light to score up more points in its bull recovery from the 112 handle. The market is in a frenzy for the greenback and US stocks on the back of Yellen's comments when she was testifying earlier in the US shift - with more to come tomorrow when she will make an appearance before the House Financial Services Committee. 

• Fed's Yellen: Some policies being discussed in Washington may raise deficits or help productivity
• Fed's Yellen: Will wait to gain further clarity on economic policy changes
• Waiting too long to tighten would be unwise - Fed's J.Yellen
• More rate hikes may be appropriate in upcoming meetings - Fed's J.Yellen
• Fed's Yellen agrees with core principles of Trump's executive order on financial reform

Meanwhile, there were no statements recently from Abe on the BoJ’s monetary policy, currencies and the size of Japan’s trade surplus with the US. "President Trump did not repeat earlier criticism of Japan that it had devalued its currency through aggressive monetary easing. It has encouraged the yen to reverse recent gains in the run-up to the meetings," explained analysts at Bank of Toyo Mitsubishi.

USD/JPY 

Analysts at Commerzbank explained that the market has its sights on the 115.62 19th January high. "A close above here is needed to reintroduce scope to key short-term resistance offered by the 16 month resistance line at 118.06." to the downside, the analysts explained that below 111.59 would introduce scope to the base of the cloud, which lies at 109.92 and, if seen, they look for this to hold (this is also the 50% retracement of the move up from November).

Note, Yen is below R1 vrs the greenback: