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.

GBP/USD defends 1.3300 after strong UK PMI data

Following Thursday's sharp decline, GBP/USD clings to small gains above 1.3300 in the American session on Friday, supported by the upbeat UK Retail Sales and July PMI data. Nevertheless, the pair's upside remains capped as investors cling to a cautious stance amid a further escalation of tensions in the Middle East. The US July PMI data failed to trigger relevant price action.

EUR/USD remains below 1.1400 after mixed US PMIs

EUR/USD pressures daily lows below the 1.1400 mark in the American session on Friday. Mixed S&P Global PMIs, as manufacturing output contracted while services activity expanded in July, triggered no relevant market reaction. The focus remains in Middle East developments and inflation-related concerns.

Gold holds above $4,050 but momentum still missing

Gold builds on its modest intraday bounce and climbs above the $4,050 level on Friday, hitting a fresh daily high amid a modest US Dollar pullback. The fundamental backdrop, however, warrants some caution before confirming that the pullback from an over two-week high, touched on Wednesday, has run its course and positioning for any meaningful upside.

Ethereum: Derivatives interest in ETH improves, but signs of caution remain

Ethereum is hovering slightly below the $1,900 level, down 3% on Thursday following a slight expansion in derivatives interest. The top altcoin's open interest has increased to 14.60 million ETH, marking a 600K ETH increase over the past two days and its highest level since June 7.

XRP retreats as ETF interest cools

Ripple (XRP) slides toward the short-term $1.10 support on Friday, as broader crypto market sentiment weighs on crypto assets. The sell-off mainly stems from fears of inflation in the United States (US) amid the ongoing war in the Middle East and rising Oil prices.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.