USD/JPY fails to hold to gains and falls to 111.35

USD/JPY failed to sustain above 112.00 and lost ground during the American session. The pair lost strength after the release of US data and then dropped further. 

Fed's Kashkari: No reason to hurry up and raise rates  

Fed's Dudley: Huge increase in consumer and corporate confidence 

US: Consumer spending hardly increased in February

Recently it reached a fresh daily low at 111.36 and currently is trading at 111.40/45. Price continues to test the lows and the 111.30/40 support zone. Earlier today the pair climbed to 112.19 hitting the highest level in a week. The pair was unable to hold on top and resumed the decline. 

During the slide, it broke a short-term uptrend line. It still remains above 111.30; a consolidation below could weaken the outlook further for the greenback. 

The yen gained momentum in the market amid a recovery in US bonds. The 10-year yield fell from 2.432% to 2.405%. In Wall Street, equity prices were little changed. The Dow Jones was falling 0.16% and the Nasdaq was up 0.11%. 

Technical levels 

To the downside, support levels might be located at 111.30 (Mar 29 high), 110.90 (Mar 30 low) and 110.60 (Mar 23 & 24 low). On the upside, resistance might be seen at 111.85 (20-hour moving average), 112.20 (daily high) and 112.45 (Mar 20 low).