USD/JPY climbs beyond 123.50 after Yellen comments

By FXStreet FXStreet (Córdoba) – USD/JPY extended gains beyond 123.50 as the US dollar continued to strengthen following supportive comments from Fed Chair Yellen, with the pair headed to test November’s highs.

The US dollar received a boost from better-than-expected ADP jobs report and the rally was fueled later in the session by Yellen saying that delaying the lift-off too long could lead to abrupt tightening at a later date and that she is confidence inflation will move toward the Fed’s target.

USD/JPY spiked toward 123.66 and it was last trading at 123.54, still 0.57% above its opening price.

USD/JPY levels to watch

In terms of technical levels, next resistances are seen at 123.74 (Nov 18 high), 124.15 (Aug 20 high) and 124.45 (Aug 19 high). On the flip side, supports could be faced at 122.82 (21-day SMA), 122.67/63 (Nov 30, Dec 1 lows), 122.20 (Nov 16 low) and then 121.76 (100-day SMA).
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Source:: FX Street