USD/JPY through 114.00 on Yellen

USD/JPY has advanced to session tops above the 114.00 handle on Tuesday, as the greenback met extra upside pressure following Yellen’s testimony.

USD/JPY bid post-Yellem

Spot regained the 114.00 mark and beyond after Chair J.Yellen noted at her testimony before the Senate Banking Committee that ‘waiting too long to hike is unwise’.

In the same line, Yellen advocated for further rate hikes in the upcoming meetings boosting market expectations of a Fed move in June.

US yields have jumped to daily highs, with the 10-year benchmark trading closer to the key 2.50% level.

USD/JPY levels to consider

As of writing the pair is advancing 0.32% at 114.09 and a break above 114.22 (high Feb.14) would open the door to 115.02 (55-day sma) and finally 115.39 (high Jan.15). On the downside, the initial support aligns at 113.25 (low Feb.14) followed by 112.84 (low Feb.10) and then 111.98 (38.2% of the November-December up move).