FXStreet (Mumbai) – The US dollar trimmed gains and retraced from highest levels since December 2002 versus the Japanese counterpart in the early European trades. The USD/JPY pair slipped below 124 handle largely as the US dollar gave back gains and fell in red against its major competitors dragging the major lower.
USD/JPY drops from 124.30
Currently, the USD/JPY pair trades 0.20% higher at 123.87, retreating from fresh 12-year highs reached at 124.30 in mid-Asia. The USD/JPY pair shed some gains mainly driven profit-taking after the major hit multi-year top.
Moreover, the US dollar eased versus its major competitors amid renewed optimism that a Greek deal might be reached ahead of next week’s Greece’s repayment to the IMF.
Earlier in the mid-Asian session, the pair rallied to fresh twelve year highs after traders favoured the greenback over other Asian currencies after weak Australian capex data prompted increased USD buying. While downbeat Japanese retail sales data also dragged the yen lower.
Meanwhile, markets now turn their focus towards US weekly jobless claims and pending home sales data for further USD moves while Japanese CPI data due tomorrow will be also closely eyed.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.30 (Today’s High) levels and above which it could extend gains 125 levels. To the downside immediate support might be located at 123.50 (Today’s Low) below that at 123 levels.
(Market News Provided by FXstreet)