Fresh wave of dollar buying hit the markets following hawkish comments from Fed’s Bullard, pushing the USD/JPY pair to a session high of 112.89 levels. Eyes 113.00 handle The spot appears on track to test offers around 113.00 handle. Dollar was taking a breather in early US, but regained bullish momentum after Fed’s Bullard said the Fed may be falling behind the curve. Bullard’s comments come after a flurry of hawkish talk from Fed officials, which resulted in a rise in April/June Fed rate hike bets and a rally in the US dollar. The pair now trades around 112.80 levels. US new homes sales figure may not have much say in determining the exchange rate, given the focus has shifted back to Fed rate hike bets. USD/JPY Technical Levels The immediate resistance is seen at 113.12 (5-MA on weekly chart), above which the pair could target 114.48 (23.6% of 125.86-110.97). On the other hand, a break below 112.54 (hourly 200-MA) would shift risk in favor of a re-test of the daily low of 112.14. For more information, read our latest forex news.