USD/JPY closes to 115.00 as Fed Chair Powell got nominated by US President Biden

The USD/JPY edges higher during the New York session, trading at five-year tops, up 0.59%, trading at 114.67 at the time of writing. The market sentiment is upbeat, spurred by US President Biden renominating the Fed Chair Jerome Powell for a second term. Also, some Fed policymakers expressed that they would like to increase the pace of the bond taper, worried that inflation could get out of their hands.

In the overnight session, the USD/JPY pair remained subdued within the 114.00-114.27 area. However, during the American session, the renomination of Fed Chairman Powell increased investors’ confidence, lifting US major equity indices in tandem with US Treasuries and the buck.

As the New York session progresses, the US Dollar Index, which measures the buck’s performance against a basket of its peers, advances 0.43%, sitting at 96.45, clinging to the 96.40 threshold. Further, rising US Treasury yields benefit the greenback. The 10-year benchmark note rate is up to five basis points, up to 1.593%, thus boosting the USD against the Japanese yen.

USD/JPY Price Forecast: Technical outlook

In the daily chart, the USD/JPY depicts an upside bias. The daily moving averages (DMA’s) reside below the spot price, though approaching an interest level around the 114.70-115.00 area, unsuccessfully broken three times. However, a daily break above the 115.00 figure would open the door for further gains. The first resistance would be December 2016 swing highs around 118.66.

On the flip side, the first support would be the November 19 high at 114.53. A break under that level would expose 114.00, followed by the November 19 low at 113.58.