USD/JPY retreats from near 113.00 as US stocks hit 2-week lows

USD/JPY erased all gains during the last three hours and pulled back from 1-month highs amid a reversal in equity prices in Wall Street and a stabilization in US bonds. The Dow Jones is falling 0.50%, after losing more than a hundred points from daily highs. US bond yields found resistance and moved slightly away from daily highs. 

Reversal near 113.00

The pair rose earlier to 112.93, after the release of US GDP data, that showed a positive revision of Q1 growth from 1.2% to 1.4%. Near the 113.00 handle lost strength and started to decline. 

US: Real GDP increased at an annual rate of 1.4% in the first quarter of 2017

During the last hour, as equity prices in Wall Street accelerated to the downside, lost all gains. It bottomed at 112.22, 10 pips above Asian session lows. Now is trading at 112.30/35, almost 70 pips below daily highs. 

Levels to watch 

The reversal, not only removed the short-term strength out of the US dollar, but if it continues, it could signal a temporary peak. 

To the downside, support could be seen at 112.10/15 (Jun 29 low), 111.80 (Jun 28 low) and 111.45 (Jun 27 low / Jun 22 & 23 high). On the upside, 112.40 (20-hour moving average) is now the immediate resistance followed by the 113.00 area.