USD/JPY consolidates above 104.00

By FXstreet.com | Updated August 25, 2014 AAA

FXStreet (Edinburgh) - The greenback continues to trade on the right footing, extending its rally and taking the USD/JPY beyond the 104.00 mark.

USD/JPY boosted by Yellen

Unexpected by many, Chairwoman Yellen delivered a hawkish tone at the Jackson Hole Symposium over the weekend, propelling the greenback above the 104.00 handle for the first time since mid-January. Empty docket in the Japanese economy today will turn the focus on the US Markit Services PMI and New Home Sales, where the US dollar will look to gather further steam. In light of Yellen’s words, Rob Carnell, Analyst at ING Bank, commented, “We also think that the chances of an April 2015 rate hike remain good, with the economy picking up pace in recent months, and leaving the housing-related and weather weakness of 1H2014 behind”.

USD/JPY levels to consider

As of writing the pair is up 0.22% at 104.15 with the immediate resistance at 104.854 (high Jan.23) ahead of 104.92 (high Jan.16) and then 105.00 (psychological level). On the downside, a breach of 103.50 (low Aug.22) would expose 103.31 (Tenkan Sen) and finally 103.15 (high Jul.30).

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