USD/JPY Price Analysis: Dollar’s recovery attempt stalls at 104.95 former support

USD/JPY recovery from 10435 finds resistance at 104.95 previous support
The dollar remains trapped within a downtrend channel

Guillermo Alcala FXStreet

The US dollar’s reversal from weekly highs at 105.75 witnessed on Wednesday has been contained at 104.30 area on Thursday and the greenback attempted to pick up with amid a broad-based dollar strength although the pair was unable to regain previous support level turned resistance, right below 105.00

Dollar ticks up on risk aversion

The US dollar trimmed earlier losses on Thursday amid a generalized rush for safety after US President Trump crushed hopes of a US stimulus agreement before November’s election. Trump accused the Democrats on Twitter of not willing to reach an acceptable agreement which dampened investors’ optimism and offered some respite to a tumbling greenback.

Furthermore, the positive US Weekly Jobless Claims, which posted a larger than expected decline last week: 787K against market expectations of 860K offered further support for the US dollar.

USD/JPY capped below previous support at 104.90

USD/JPY’s upside attempt, however, has been tame, and the pair remains trading within a clear downtrend channel. Greenback's rebound from 104.35 low has found resistance right below 104.95/05 area, where the October 2 and 14 lows lie. If the pair manages to break that level, next resistance lies at 105.50/60 (October 21 high / 50-day SMA) before 106.10 (October 7 high).

On the contrary, a bearish reversal below October 21 low at 104.35 might find support at 104.00 (September 21 low) before heading to March 12 low at 103.10.

USD/JPY daily chart

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

EUR/USD struggles below 1.1800 ahead of US data, Fedspeak

EUR/USD remains trapped in a tight range below 1.1800 in the European session on Tuesday. The pair struggles amid a modest US Dollar strength and an improvement in risk sentiment, even as US tariff uncertainty lingers. The focus now remains on the US data and Fedspeak.

GBP/USD stays defensive below 1.3500 as USD firms up

GBP/USD stays on the back foot below 1.3500 in the European trading hours on Tuesday. The pair declines as the US Dollar rebounds from losses recorded over the previous two sessions. Traders will focus on the US weekly ADP Employment Change and Consumer Confidence data due later in the day, along with speeches from Federal Reserve officials.

Gold holds pullback below $5,200 amid USD uptick

Gold holds moderate losses below $5,200 in European trading on Tuesday, though it lacks follow-through selling. Following the previous day's knee-jerk fall in reaction to US President Donald Trump's new global tariffs and the subsequent bounce, the US Dollar attracts fresh buyers ahead of mid-tier data and Fedspeak.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.

Supreme Court nixes tariffs, Trump teases 15% global tariff

On February 20th, the Supreme Court ruled that Trump’s global tariffs under IEEPA authority were unconstitutional, effectively nullifying the framework. However, the relief was short-lived. Within hours, Trump floated a 15% blanket tariff under an alternative legal authority.

Dogecoin, Shiba Inu, and Pepe extend losses on bearish signals

Meme coins are facing renewed selling pressure amid fading broad risk-on sentiment so far this week, with Dogecoin, Shiba Inu, and Pepe extending their losses after recent corrections.