USD/JPY Hit Fresh Highs above 110.00 After Fed Minutes
broke above previous highs and climbed above 110.00 after the release
of the FOMC minutes. The pair peaked at 110.04, the strongest level in
three weeks and then pulled back modestly but it was still hovering
around the 110.00 area, with a bullish tone.
The US central bank signaled that a June rate hike was likely if economy warranted, triggering a rally of the USD and a decline of stock prices in Wall Street that erased all gains immediately after the release of the document. The yen fell versus the US Dollar but managed to rise versus commodity currencies and the euro.
USD/JPY not much until 110.70
The pair is consolidating above an important resistance area, located around 109.70 and if it holds above 110.00, the next relevant area could be seen at 110.70 (Mar 17 / Apr 26 low) and then 111.85/90 (Apr 25 & 28).
On the opposite direction, support is now seen at 109.65 (previous resistance) 108.70, (daily low) and 108.20 (May 12 low).