FXStreet (Guatemala) – USD/JPY is currently trading at 122.90 with a high of 123.11 and a low of 122.10.
USD/JPY is much lower of safe haven flows as the Greek news finally takes the markets full attention as a Grexit is on the cards and the possibility of a full on Greek debacle.
Greece drama summary
Quite simply, the ECB has decided not to increase emergency funding to Greek banks. Athens is required to make a €1.6bn (£1.1bn) payment to the International Monetary Fund (IMF) this Tuesday on the same day that its current bailout expires while Greek banks are due to be closed until 7th July and Athens stock markets will be closed tonight on the open in Europe while there are domestic capital controls in place while is going to be detrimental to an already very weak the economy and could tip them in to recession. the implications of these events could weaken the EZ outlook and neighbouring economies, haven the safe haven flows in to the Yen. However, EZ leaders are adamant that Greece need to stay in the EZ are urging Greece to come back to the negotiating table while respecting European rules.
Besides from Greece, we have had Kuroda hit the wires mentioning that he is confident BOJ can achieve its inflation target with “unwavering determination”. From the calendar, we await Nonfarm Payrolls as the main event.
Technically, USD/JPY’s June lows were taken out at 122.45 while the market on the Tokyo open has seen some demand coming in supporting the downside and making a start at filling the bearish opening gap in early Asia. 121.80 comes as next key support guarding 120.40.
(Market News Provided by FXstreet)