USD/JPY thorough 114.00, 3-day peaks

The greenback is now accelerating its daily upside vs. its Japanese counterpart, with USD/JPY advancing to daily highs beyond 114.00 the figure.

USD/JPY boosted by US yields

The pair has advanced to daily highs above the 114.00 handle following a sharp rebound in US yields, with the 10-year benchmark extending the weekly upside to multi-day tops near 2.55 at the time of writing.

USD seems to have recovered the smile today - pushing spot to trim earlier losses, retake the 114.00 limestone and attempt to close another week with gains - as the recent unwinding of the Trump-led reflation trade seems have lost vigour.

Looking ahead, US Initial Claims, Trade Balance figures, New Home Sales and Markit’s Services PMI are all due, while key Japanese inflation figures are due tomorrow.

USD/JPY levels to consider

As of writing the pair is gaining 0.86% at 114.27 and a break above 114.46 (55-day sma) would open the door 115.16 (20-day sma) and then 115.62 (high Jan.19). On the flip side, the next support is located at 113.01 (low Jan.25) ahead of 112.49 (low Jan.24) and finally 111.98 (38.2% Fibo of the November-December 2015 up move).