The Dollar/Yen continues to push higher as both the US Dollar and US stock indices post strong positive gains. The greenback continued to strengthen for the week as US Treasury yields recovered with the 10-Year yield rising from 2.85% to 2.88%. The pair is also being pushed higher due to a decrease in demand for low yielding, safe haven assets such as the Yen. Such decrease in demand is associated with a recovery in high yielding assets such as US stocks.
The pair breaks above the 113.38 resistance level following the break of the 200-period moving average which confirmed the shift in the bias of the pair. The break above the 113.38 resistance exposes the next key resistance level at 113.85. Adding to the bullish momentum, the 13-period moving average has recently broke above both the 50 and 200-period moving averages.
Support: 112.89/ 112.50
Resistance: 113.38 / 113.85