USD/JPY drops further as Wall Street add losses

USD/JPY is falling on Tuesday, erasing most of Monday gains and remains with negative momentum as stocks in the US extend the decline. The Japanese currency gained momentum across the board hitting fresh highs.

USD/JPY testing 110.30/50

The pair started the American session trading around 111.15 but then turned to the downside and broke below Asian session lows (110.78). Recently printed a fresh daily low at 110.51 and currently it trades at 110.60, down 0.50% for the day. So far it represents a bearish correction after rising 150 pips during the previous two trading days.

Price so far held above the 110.30 - 110.50 area that is an important support (previous resistance). A consolidation below would add more pressure to the US dollar, leaving the doors open for a test of the uptrend line from three weeks ago that currently stands at 109.65/70.

Stocks, oil down, gold up

During the last hours, crude oil dropped sharply, falling from levels near $50.00 back below $49.00 as the OPEC meeting takes place. In the US, the Dow Jones reach 1-week lows and is now falling more than a hundred points (-0.74%) and the S&P 500 is down 0.37%. Gold is rising with the ounce now up $10 for the day, currently at $1217.20, at the highest since last Friday.

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