USD/JPY stabilizes above 114.00

USD/JPY stabilized after rallying more than a hundred pips during the European session following ECB announcement of QE extension/taper amid broad USD strength.

USD/JPY regained the 114 mark and reached a peak of 114.37, although it stalled roughly at the same level it did yesterday. The pair found once again resistance and was confined to a tight range over the last hours. At time of writing, USD/JPY is trading at 114.15, still up 0.35% on the day.

The US dollar strengthened across the board in the aftermath of the ECB decision to extend and at the same time taper its QE programme. Meanwhile, USD strength was fueled by data showing US weekly jobless claims fell 10,000 to 258k for week ended Dec. 2.

USD/JPY technical levels

As for technical levels, next resistances for USD/JPY are seen at 114.39 (Dec 7 high), 114.76 (Dec 5 high) and 115.00 (psychological level). On the other hand, supports could be found at  113.49 (10-day SMA), 112.85 (Dec 5 low) and 112.05 (Nov 30 low).