USD/JPY drops back below 105.00 as US stocks trim gains

• Yen recover ground as Wall Street moves off daily highs. 
• USD/JPY back under 105.00.
• US bond yields back to Friday’s close levels. 

USD/JPY failed to hold on top of 105.00 amid a slide of the greenback and also after a recovery of the Japanese as US stocks trim gains. 

The pair peaked at 105.25, slightly below Thursday highs. Afterward lost momentum and started to pullback. The correction accelerated during the last minutes. Recently reached 104.92 and it was hovering around 104.95. 

The decline took place amid a retreat in US equity prices. The DOW JONES was up 1% but far from the top. Since the beginning of the session lost 250 points. In the bond market, US yields turner lower for the day. 

The yen and the US Dollar were among the worst performers. Despite rising against the yen, the greenback was at monthly lows versus many of its rivals. US Dollar Index Futures dropped to 88.60, the lowest level since February 16. 

USD/JPY Technical levels 

“From a technical point of view, the current recovery seems corrective, with the risk still skewed toward the downside short and long term”, said Valeria Bednarik, Chief Analyst at FXStreet. 

To the upside, immediate resistance might lie at 105.25/30 (Mar 23 & 26 high), followed by 105.55/60 and 105.80. On the flip side, support could be seen at 104.85, before the key 104.60/65 area (Mar 23 & 26 low) and 104.20.