Currently, USD/JPY is trading at 114.34, up 0.09% on the day, having posted a daily high at 114.42 and low at 114.20.
USD/JPY has been struggling to really take off on the 114 handle after a 100 pip rally overnight on the back of Yellen who delivered her "Humphrey Hawkins" testimony before the Senate Banking Committee today. She will also make an appearance before the House Financial Services Committee tomorrow.
- 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
The latest Japanese GDP report for Q4 released recently remains a supporting factor to the Yen that revealed that the Japanese economy continued to expand solidly by annualised rate of 1.0% in Q4, which was the fourth consecutive quarter of above-trend growth, as noted by analysts at Bank of Tokyo Mitsubishi.
"The BoJ is confident that Japan’s economy will continue to expand solidly in 2017," explained the analysts, however, further adding, "Yet the still weak inflation outlook continues to leave scope for the BoJ to maintain its current loose policy stance in the near-term which is still weighing heavily on the yen. According to our long-term valuation models, the yen remains significantly undervalued against the US dollar despite modest gains early this year."
The price got through the previous 114.25 Imoku 2 resistance and now has eyes for 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," explained analysts at Commerzbank.