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).
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.
