USD/JPY approaches 112 as USD gains momentum

The  USD/JPY gathered momentum and climbed to a new ten-day high at 111.94 in the later hours of the NA session as the greenback received some additional demand on New York Fed's President William Dudley's comments. 

Dudley suggested that gradual rate hikes would be appropriate to avoid the overheating of the economy and a significant inflation overshoot. He also added that it is now more likely for the U.S. fiscal policy to become more stimulative.

Earlier today, the US Dollar Index received the initial boost from the upward revision to the U.S. economic growth data as robust consumer spending provided an uplift. At the moment the index is up 0.67% at 100.45. Moreover, U.S. stocks, led by financial shares, ended the day higher, making it harder for the JPY to recover against the greenback.

• US: Real GDP increased at an annual rate of 2.1% in the fourth quarter of 2016
• Wall Street climbs, assisted by oil prices and US data

As of writing, the pair is at 111.84, facing the first resistance at 112 (psychological level) followed by 112.70 (20-DMA) and 113 (psychological level/50-DMA). On the downside, a break below 111.40 static level could aim for 111 (psychological level) and 110.10 (Mar. 27 low).