USD/JPY extends rally, approaches 110.00

The US dollar rose further across the board and pushed USD/JPY further to the upside. The pair approached 110.00 and hit a fresh 5-month high at 109.91. 

The move is being driven by a stronger US dollar after economic data and following Janet Yellen’s presentation in Congress. Equity market remains marginally higher, while US bond yields are moving toward yesterday’s highs. 

USD/JPY rally continues 

The pair is trading at 109.85, up almost a hundred pips for the day. It is gaining ground again after taking a pause yesterday. Out of the last 10 trading days, it has risen in eight, accumulating a gain of almost 700 pips. Two weeks ago USD/JPY was hovering around 103.00. 

To the upside, above the 110.00 barrier, resistance levels might be seen at 100.60 (Mar low) and 110.95/111.00 (February lows). On the flip side, support now could be seen at 109.75 (Nov 16 high), 109.20 (20-hour moving average) and 108.50/55 (Nov 14 high / daily low). 

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