FXStreet (Mumbai) – The yen gathered further momentum versus the US dollar in the mid-Asian trades, knocking-off USD/JPY to fresh session lows closer towards 123 handle. The yen extends its upward moves as traders digest the latest set of Japanese macro data while looming Greece concerns bolsters the safe-haven bids in the Japanese currency.
USD/JPY drops from 123.52
Currently, the USD/JPY pair drops -0.30% to fresh session lows at 123.26, breaking below the key 123.32 support. The offered tone in USD/JPY heightened in Asia as traders flocked to safety assets such as yen, gold, treasuries amid continuing Greece debt negotiations with Thursday’s suspension of the Euro group meeting adding more nervousness in the market.
Moreover, the yen also received fresh impetus from a slightly better Japan’s CPI print as Japan closely averted deflation risks again. Although the gains in yen came in as market’s delayed reaction to the Japan’s data release.
Japan’s national core CPI rose 0.1% y/y in May, according to the Statistics Bureau, easing from 0.3% in the previous month, but coming in slightly stronger than the market forecast of no change in the price index. Tokyo’s more timely CPI gauge rose 0.1% in June, as forecast, after rising 0.2% in May.
While, household spending rose 4.8% y/y in May, stronger than a 3.5% rise expected while unemployment rate held at a record low 3.3% in May.
Meanwhile, the pair remains unperturbed by broad based US dollar strength as traders now shift their focus towards revised consumer sentiment data due later today for further cues on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 123.96 (June 25 High) levels and above which it could extend gains 124.19 (June 23 High) levels. To the downside immediate support might be located at 123 below that at 122.60 (June 11 Low) levels.
(Market News Provided by FXstreet)