USD/JPY holding near 121.00

By FXStreet FXStreet (Córdoba) – USD/JPY is falling modestly on Monday and remains near the key short-term support located at 121.00. The US dollar is falling across the board while commodity prices are recovering.

Stock in Wall Street are rising. The Dow Jones is up 0.68% and the Nasdaq gains 0.81%. In Europe, shares are about to end also with gains. Despite risk appetite, US bond yields are falling supporting the yen.

USD/JPY consolidating before…

On Friday the pair made a dramatic reversal and from testing a key resistance above 123.50 it dropped toward 121.00. So far the decline has been limited by the mentioned area.

Technical indicators favor the downside, with price below relevant MA. Under 121.00, the next support is located at 120.50: a daily close below here could open the doors for a bigger slide.

On the opposite direction, the US dollar could gain strength if it rises above 121.60/65, where the 100 and 200-day MA currently stand.
For more information, read our latest forex news. …read more

Source:: FX Street