USD/JPY drops below 111 on Yellen's remarks

The USD/JPY pair has felt some pressure as the greenback weakened while Fed Chairwoman Janet Yellen is giving her speech at the University of Michigan. At the moment, the pair is down 0.18% at 110.90.

Yellen said that the inflation is still slight below the 2% target and added that it would be appropriate to gradually raise rates if the economy continues to perform well. On the other hand, she also reiterated that she doesn't want to have to raise the rates rapidly.

• Fed's Yellen: Economy is pretty healthy
• Fed's Yellen: We are near reaching objectives

Despite some initial reaction to Yellen's statements, the US Dollar Index continues to stay in the daily channel. After rising to 101.03 during the first minutes of the speech, the index slipped back to 100.94 at the moment, recording a daily loss of 0.14%.

Technical outlook

110.80 (daily low) is the initial support for the pair ahead of 110.13 (Apr. 7 low) and 109 (psychological level). On the upside, technical resistances are aligned at 111.25 (20-DMA), 112.20 (Mar. 31 high) and finally 112.70 (50-DMA).