The bid tone around USD strengthened, pushing the USD/JPY pair well above 113.00 levels after the data in the US showed a sharp pick up in core inflation in January. Two-year treasury yield rises, USD gains Following the release of the strong inflation data, the two-year yield in the US; which mimics rate hike bets; jumped to trade around 0.754% (up 4 bps on the day). Consequently, the USD/JPY finally managed to extend gains above 117.00 levels. The pair clocked a post data high of 113.20, before easing slightly to trade around 113.10 levels. Ahead in the day, oil price movement and the resulting action in the US stocks could influence the pair. USD/JPY Technical Levels The immediate resistance is seen at 117.22 (resistance on hourly chart), above which prices could rise to 118.85 (5-DMA and 10-DMA). On the other hand, a break below 112.71 (daily low) would open doors for a slide to 111.65 (Feb 12 low). For more information, read our latest forex news.