USDJPY MOVES TO ONE MONTH TRADING HIGH

The USDJPY pair has moved to a one-month high of 112.07, as U.S treasury yields continue to support U.S dollar buying, and investors expect the Federal Reserve to continue to raise interest rates, and normalize U.S monetary policy.

Later today, Federal Reserve Chair Janet Yellen will be speaking on the global economy, in London. Financial markets expect Chair Janet Yellen to reiterate her hawkish policy stance to investors, highlighting the divergence in policy between the Federal Reserve and the Bank of Japan.

At present the USDJPY pair has backed away from the intraday high, and trades back towards the H1 time frame, 20 period moving average at 111.75.

Support for the USDJPY pair is found at 111.51, a key technical level the pair has been struggling to maintain price above on a daily basis.

Intraday resistance for the USDJPY pair past 112.07, is located at the daily 200 period moving average, at 112.45. Above 112.45 historical USDJPY resistance is located at 113.22 and 113.89.

To the downside, a loss of the 111.51 area, then risks further intraday losses towards the H4 time frame, 200 period moving average, at 111.21.