USD/JPY drops below 113.00 despite record highs in Wall Street

Matías Salord FXStreet

USD/JPY tested earlier the 113.20 zone and failed to break higher. During the American session pulled back and dropped toward 112.60.

USD losses strength

The US dollar is retreating across the board on Tuesday. The Dollar Index reached earlier today 93.72, the highest level in one month and a half. At the moment of writing it was at 93.30, in negative territory for the day.

The greenback lost momentum amid a recovery in US bonds. The 10-year yield that yesterday hit the highest since July is falling today modestly to 2.332%. The yen was able to climb versus the US dollar despite risk appetite in Wall Street. The Dow Jones was up 0.33%, at record highs. The recovery of US dollar appears to be losing momentum ahead of US labor market data.

Technical levels

USD/JPY continues to hold a bullish tone on a wider perspective but the upside remains limited by the 113.20 zone. A break higher would reinforce the upside outlook while below 112.20 an extension of bearish correction seems likely.

To the upside, resistance levels might be located at 113.20/25 (Sep 17, 18 & Oct 3 high), 113.55/60 (Jul 14 high) and 113.95 (Jul 10 low). On the flip side, support could be seen at 112.65 (daily low), followed by 112.20 (Sep 29 low) and 111.85 (Sep 19 high).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.