USD/JPY corrects to 114.80/70 on Yellen

By FXStreet The greenback remains on the defensive vs. its Japanese counterpart today, with USD/JPY hovering below the 115.00 handle on Yellen’s statement.

USD/JPY keeps the red sub-115.00 post-Yellen

The pair’s recovery from the mid-114.00s has halted just ahead of the 115.20 area earlier in the session, relegating the dollar to trade in the area below the 115.00 handle following the Fed’s Semi-annual Monetary Policy Report and Yellen’s testimony.

The Fed argued that the stronger dollar and lower US exports could be indicative of a more gradual pace of rate increases, while it added that financial stability risks are ‘moderate’.

In turn, Chairwoman Yellen noted that domestic financial conditions have become less supportive of growth, adding that economic events overseas ‘pose risks to US economic growth’.

USD/JPY levels to watch

As of writing the pair is down 0.15% at 114.85 and a breakdown of 114.24 (low Feb.8) would aim for 112.41 (monthly low Nov.2014) and finally 105.18 (monthly low Oct.2014). On the upside, the next up-barrier lines up at 117.53 (high Feb.8) ahead of 117.87 (20-day sma) and then 119.78 (55-day sma).
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Source:: FX Street