USD/JPY bulls look to take back the 114 handle

USD/JPY has been better bid following the results of the US elections and FOMC that maintained the sentiment that has carried the dollar higher since April this year. As analysts at Westpac explained. the Fed voted unanimously to leave interest rates steady, their statement including just a couple minor edits and overall continuing to acknowledge the robust economy and more gradual rate increases:

"Business investment was characterised as having, "moderated from its rapid pace earlier this year", a downgrade from "grown strongly", otherwise the Fed continues to note brisk conditions, repeatedly using “strong” to characterise  the labour market, household spending and broader activity. The Fed provided no explicit signal for a December hike but that's not necessary with markets almost fully pricing one in."

• Wall Street pares early gains following Fed's policy statement, ends day mixed

As far as yields played out overnight, the US 10yr treasury yield ranged sideways between 3.21% and 3.23%, while 2yr yields ranged between 2.94% and 2.96%. Fed fund futures yields continued to price the chance of another rate hike in December at 80%.

USD/JPY levels

• Support levels: 113.85 113.40 113.00. 
• Resistance level: 114.10 114.55 114.90.

Valeria Bednarik, Chief Analyst at FXStreet explained that technically, the 4 hours chart for the pair shows that the price is further above its 100 and 200 SMA which gain upward traction over 100 pips below the current level, while technical indicators reached overbought readings, now stabilizing at daily highs, with no directional strength but still maintaining the risk skewed to the upside. "Further gains above 114.10 should spur demand for the pair, with the next probable bullish target at 114.54, October monthly high."