USD/JPY breaks higher, eyes 115.00

The greenback resumed the upside and pushed USD/JPY to break above previous highs. The pair broke above 114.40 and jumped to 114.76, hitting the highest level since last Friday. 

Stocks flat, yields up

The rally of the USD was boosted by rising US bond yields while equity prices in Wall Street were posting mix results. The Dow Jones was up 0.13% while the 10-year yield rose above 2.55%, highest since December 28. The yen was among the worst performers in the market. 

Relevant breakout 

The recent rally pushed the price above a downtrend line from December highs and could open the doors to more gains and signal the potential end of the bearish correction. Since the beginning of the year, the pair has been moving in a downtrend channel, that is being broken. 

Currently, USD/JPY is testing the 100-moving average in four-hour chars, consolidating above the mentioned line, that stands at 114.40/50. A retreat below 114.40 could remove the bullish tone of the US dollar. To the upside, resistance now might lie at 115.00 (psychological) and 115.15 (Jan 10 low).