USD/JPY unable to rise above 114.00, retreats toward 113.50

The Japanese yen remains among the worst performers in the currency market but during the last hours, it managed to recover some lost ground against the US dollar. 

USD/JPY peaked at 114.03, the highest levels since February 16 but it failed to hold above 114.00 and pulled back. The pair recently dropped to 113.59 and it was trading at 113.65, far from daily highs but still more than 70 pips above yesterday’s closing price and exactly 200 pips on top of Tuesday’s low. 

Greenback lost strength in the market during the last hours and erased gains versus the euro and the Swiss franc. In Wall Street, the Dow Jones broke above 21.000 for the first time ever and it was up 1.50%, on the day after Donald Trump’s speech at a joint session of Congress. 

Levels to watch 

To the upside, resistance levels might be seen at 114.00/05 (daily high), 114.40 and 114.95 (Feb 15 high). On the flip side, support could be located around 113.55/60 (American session low), 113.45 (20-hour moving average) and 112.70 (daily low).