The yen gained momentum in the market as stocks in the US moved sharply off session highs. USD/JPY broke below 113.35/40 and dropped to 113.24 hitting a fresh daily low. The pair is trading at 113.25, down 0.60% for the day, with a bearish tone. So far it has been able to hold above 113.00 and also on top of 113.10/20 (March 2, 3 & 4 low). A break lower could open the doors for an extension of the decline. “The short-term outlook keeps favoring the downside, as the price in the 1 hour chart is currently developing below its 100 SMA, whilst the technical indicators in the same time frame have been unable to advance beyond their mid-lines, and are currently resuming their declines”, said Valeria Bednarik, Chief Analyst at FXStreet. According to her, the 4-hour chart shows a neutral stance, with the “price a handful of pips above a horizontal 100 SMA, and the Momentum indicator hovering around its 100 level. The RSI indicator however, keeps heading south around 46, supporting additional declines on a slide below the 113.10 level, the immediate support.” US stocks erased gains The Dow Jones is hovering around 17,000 unchanged, after hitting earlier 17,100. The Nasdaq is falling 0.77% and the S&P is down 0.33%. In Europe, main stocks indexes finished with modest losses. Among commodities, crude oil is about to post the highest close of the year near $38.00 a barrel (WTI), as it rises more than 5%. Gold is up marginally, currently hovering around $1267.00 an ounce. For more information, read our latest forex news.