The greenback soared after Fed’s Yellen said that US economy is getting closer to the central bank’s objectives. Yellen also confident that the US economy will continue to recover.
Investors’ focus is now at the economy after US consumer price index rose. This data, combined with Yellen’s statement, added fuel to market expectation on possible further rate hike this year.
Intraday bias for USDJPY currently is bullish. Market is testing resistance area at 114.881. If the resistance breaks, USDJPY possibly will extend the rally up to 115.429-116.041. You may go long if the resistance breaks.
On the other hand, note that hourly stochastic is overbought. As alternative strategy, I also plan to look for buy signal confirmation on a pull-back move to within the support area at 113.994-113.447, with 114.333 as target and 114.881 in extension.
Be careful if the market managed to break the support 113.447 because it will turn the intraday bias to bearish and possibly will drag USDJPY down to 113.108-112.560.
Plan: Buy on break of 114.881; target at 115.429 or 116.041
Alternative: Buy within 113.994-113.447; target at 114.333 or 114.881