The Dollar/Yen extend its gains as traders continue to digest last week’s hawkish statement from the US Federal Reserve. Last week, the Fed made it clear that they intend to continue hiking rates gradually as inflation remains within the targeted range with strong household spending and growth in investments. For today, the pair will continue to be driven by last week’s comments from the Fed, additionally, the pair will also be driven by the performance of US stocks as equity performance remain a significant driver to the pair. Positive equity performance decreases demand for the safe haven Yen and drives the Dollar/Yen pair higher.
The pair continues its upward momentum while breaking the 114.03 resistance. The pair's momentum is clearly bullish as prices continuously reject breaking below the 13-period moving average. Finally, the most recent break above the 114.03 resistance paves the way for a rise towards 114.50.
Support: 113.63 / 113.34
Resistance: 114.03 / 114.50