USD/JPY rises to test daily highs as US dollar gains momentum again

USD/JPY reached earlier today 10-month highs at 118.65 and then pulled back. The retreated from the highs found support at 117.65. The pair rebounded and is now looking at daily highs, trading at 118.50. 

The greenback continues to hold a strong momentum across the board as crude oil declines and amid a rally of equity prices in Wall Street. The Dow Jones was up 0.60% and the Nasdaq 0.56%. 

 The yen weakened in the market during the last hours despite the recovery in US Treasuries. The 10-year yield rose to 2.634% and then pulled back to 2.59%. 

USD/JPY levels 

To the upside, resistance levels could be seen at 118.65 (Dec 15 high), 119.00 (psychological) and then 120.00/05 (psychological level / Feb 3 high). On the flip side, supports might lie at 117.65 (American session low), 117.00/116.99 (psychological level / Dec 15 low) and 116.10/15 (Dec 12 high).