Chart - Courtesy Trading View
USD/JPY was trading 0.19% higher on the day at 115.09 at around 05:15 GMT, slightly lower from session highs at 115.14.
The pair tested levels unseen since Mar 2017, further gains on the cards as technical indicators also support further upside.
US President Joe Biden reappointed Federal Reserve Chair Jerome Powell for a second term, strengthening bets for interest rate hikes.
The Bank of Japan has maintained one of the most dovish monetary policy stances among major central banks, while the Fed has begun tapering its asset purchase program.
Monetary policy divergence is likely to act as a major tailwind for the pair, driving prices higher.
Major Support Levels:
S1: 114.45 (5-DMA)
S2: 113.97 (21-EMA)
S3: 113.58 (Weekly low)
Major Resistance Levels:
R1: 115.50 (March 2017 high)
R2: 116
R3: 116.66 (88.6 Fib)
Summary: USD/JPY trades with a bullish bias. Scope for test of 116 levels. Bullish invalidation only below 21-EMA.
