Last week, we were monitoring the USD/JPY as it threatened a key resistance at 114.00. We discussed the bullish continuation scenario. But let's first take a look at the battle that occurred around 114.USD/JPY 4H Chart 2/15(click to enlarge)Bulls Win:- As we can see on the 4H chart, price consolidated around 114 in the past few sessions.- We even had a bearish divergence between price and the RSI.- However, price busted higher during the 2/14 session. The breakout against a bearish divergence suggests that the market is finding strength even after signs of slowing momentum. This to me is a bullish sign.- I think USD/JPY has at least upside towards 115.50, near the highs in the previous consolidation range in January. - Furthermore, the bullish breakoutUSD/JPY 2/14 Daily Chart(click to enlarge)Wedge Breakout:-The daily chart shows that price has been bullish before the January correction.- The 2/14 session bullish breakout suggests bullish continuation at least back to the highs around 118.50. - An aggressive outlook within the context of a bullish continuation would be the 120.00 handle. Producer Price Index and the Fed:USD-strength was apparent across the board. The latest US Producer Price Index report might have something to do with the 2/14 session push. PPI grew 0.6% in January, which beats forecasts around 0.3%. Producer prices have effects on the final consumer price and thus is an important indicator for overall inflation. Strong inflation will lead to tightening of monetary policy. It just so happens that Yellen talked today and sounded like the Fed is on course to raise rates in 2017. This is not a surprise, but re-affirmation is important because the Fed changed its original course for 2016 to raise rates twice to only one rate-hike. Bureau of Labor Statistics - Producer Price IndexFed on course to raise interest rates at an upcoming meeting: Yellen (Reuters)