|

USD/JPY trims losses above 111.00 as Wall Street recovers

The Japanese yen weakened in the market amid a rally in US stocks and a decline in US bonds. USD/JPY recovered from multi-month lows and climbed toward 111.20. Earlier the pair bottomed at 110.61, hitting the lowest level since mid-November. 

The recovery of the dollar started after the beginning of the American session. In Wall Street, the Dow Jones is up 0.34% and the Nasdaq gains 0.28%. The 10-year yield rose from 2.391% to 2.425%. Analysts are watching closely negotiations in the US Congress regarding the health bill. 

Technical outlook 

USD/JPY continues to move with a bearish bias, but the pair appear to be forming a short-term base around 110.60/70. A consolidation below that area could open the doors for an extension of the decline.

If the recovery continues, the pair could face resistance at 111.25 (American session high), 111.55/60 (daily high) and 111.80 (Mar 22 high). On the downside, support could be located at 110.60/70 (daily low), 110.00 and 109.80 (Nov 16 high). 

USD/JPY

Author

Matías Salord

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.

More from Matías Salord
Share:

Editor's Picks

EUR/USD stays below 1.1800 as markets await Fed speeches

EUR/USD remains trapped in a tight range below 1.1800 in the second half of the day 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 comments from Federal Reserve officials.

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 retreats below $5,200 on renewed USD strength

Gold stages a deep correction following Monday's rally and trades below $5,200. 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 gathers strength and weighs on XAU/USD ahead of Fed policymakers' speeches. 

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.

AI-scare trade and tariff uncertainty takes hold

It was quite a day, with AI-disruption fears and tariff uncertainty triggering a risk-off session. By now, it's nearly impossible to have missed the Supreme Court's 6-3 decision that struck down US President Donald Trump's reciprocal tariffs last Friday.

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.