USD/JPY Explodes Higher, Testing 113.65/70 Offers
USD/JPY has seen an explosion to the upside, taking the exchange rate from a low of 113.24 all the way up to 113.64, with the pair heading for an 8th straight day of gains.
Fed's Yellen speech eyed, Yen longs overwhelmed
While the winning streak in USD/JPY is quite impressive, traders should not forget that specs continue to play Yen shorts, as per data received last Tuesday March 23th. That said, the break of 111.00 post FOMC has undoubtedly served to collect some handsome profit by shorts, leading to a more neutral stance ahead of the Yellen speech later today. In terms of options pricing, the premium being paid in USD/JPY is now on the calls side, suggesting that market makers have turned more constructive on USD/JPY.
USD/JPY key levels
In terms of key levels for the day, 113.70 is immediate resistance followed by stronger offers ahead of 114.00 (supply area from FOMC dovish outcome) ahead of 114.50. On the downside, 113.50 is now key intraday support ahead of 113.30 and 113.00 round number. For now, buyers remain in clear control of the price action.
(Market News Provided by FXstreet)