USD/JPY erases gains and falls to 112.50

Matías Salord FXStreet

USD/JPY failed to hold to gains and pulled back to the 112.50 area. The recovery of the pair lost strength near the 113.00 zone and started to decline.

After the beginning of the American session, it started to move with a bearish bias and bottomed at 112.53, level located above Asian session lows that lie at 112.44. Currently, it trades at 112.60, marginally lower for the day. Price action moves in the market remain limited so far, in a low volume session.

The Japanese currency gained momentum despite the fact that equity prices are up on Wall Street. The recovery in US bonds (lower yields) weakened the demand for the US dollar against the yen. The 10-year bond yield dropped to 2.475%, hitting the lowest since March 6.

Technical levels

To the upside, resistance levels might be located at 112.90 (daily high), 113.15 (Mar 15 low) and 113.50/55 (Mar 6 low / Mar 16 & 17 high). On the flip side, support could be seen at 112.50 (American session low), 112.05 (Feb 02 low) and 111.55/60 (Feb low).

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 holds steady above 1.1850 in quiet session

EUR/USD stays defensive but holds 1.1850 amid quiet markets in the European hours on Monday. The US Dollar is struggling for direction due to thin liquidity conditions as US markets are closed in observance of Presidents' Day holiday.

GBP/USD flat lines near 1.3650 ahead of UK and US data

GBP/USD kicks off a new week on a subdued note and oscillates in a narrow range near 1.3650 on Monday. The mixed fundamental backdrop warrants some caution for aggressive traders as the market focus now shifts to this week's important data releases from the UK and the US.

Gold corrects lower, tries to stabilize above $5,000

Gold started the week under bearish pressure and declined to the $4,960 area before staging a modest rebound. As trading volumes remain thin with the US financial markets remaining closed on Presidents' Day holiday, XAU/USD looks to stabilize above $5,000 ahead of this week's key data releases.

Bitcoin consolidates as on-chain data show mixed signals

Bitcoin price has consolidated between $65,700 and $72,000 over the past nine days, with no clear directional bias. US-listed spot ETFs recorded a $359.91 million weekly outflow, marking the fourth consecutive week of withdrawals.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

Monero Price Forecast: XMR risks a drop below $300 under mounting bearish pressure

Monero (XMR) starts the week under pressure, recording a 4% decline at press time on Monday after a 7% drop the previous day, putting the $300 support zone in focus.