USD/JPY continues scaling higher, 114.00 in sight ahead of Fedspeaks

The USD/JPY pair was seen building on overnight break-out momentum above the 113.00 handle and has now jumped to the highest level since mid-March.

The ongoing up-move in the US treasury bond yields, against the backdrop of growing prospects for an eventual Fed rate-hike action, underpinned the US Dollar demand and has been a key factor driving the pair higher. 

Adding to this, improving investors' risk-appetite, which tends to dent the Japanese Yen's safe-haven appeal, further collaborated to the pair's ongoing up-move to near two-month highs. 

The pair traded with positive bias for the third consecutive session and has now added in excess of 550-pips from the vicinity of 108.00 handle, 5-month lows, touched during mid-April. 

Later during the day, a relatively thin US economic docket seems unlikely to hinder the pair's ongoing strong bullish trajectory but would be looked upon for some short-term trading opportunities. 

Also in focus would be speeches by couple of FOMC members - Boston Fed President Eric Rosengren and Dallas Fed President Robert Steven Kaplan, which might influence investors' expectations over the central bank's near-term monetary policy outlook and provide some fresh impetus. 

Technical levels to watch

Immediate resistance is pegged near the 114.00 handle, above which the momentum is likely to get extended towards 114.40 intermediate resistance ahead of 114.75-85 strong horizontal hurdle. On the downside, 113.40 level now seems to act as immediate support, which if broken could drag the pair back towards the 113.00 handle.