FXStreet (Bali) – The US dollar manages to fight back lost ground somewhat against the Japanese currency in the mid-Asian session, with USD/JPY back above 123 handle. The major recovered half its slide as markets absorb the latest developments surrounding Greece while broad based US dollar strength continues to support.
USD/JPY recovers from six week lows
Currently, the USD/JPY pair trades -0.57% lower at 123.15, recovering from lowest levels in six weeks reached at 122.11. The dollar-yen pair extends its recovery and swung back above 123 levels as markets saw the fall as excessive and now await fresh Greek updates for further incentives.
Further, a broadly stronger US dollar largely on the back of tumbling EUR/USD also offers support to the USD/JPY pair.
However, the Japanese currency may keep the edge of the greenback on safe-haven appeal amid risk-off sentiment as Greek debt concerns continue to linger ahead of June 30 deadline to the IMF.
Greece is very close to exiting its current bailout program and defaulting on its debt to the IMF on Tuesday. At an extraordinary Euro group meeting on Saturday, the finance ministers rejected Yanis Varoufakis’s request to provide some extra time for the Greek government to hold the referendum.
USD/JPY Technical Levels
To the upside, the next resistance is located 123.44 (June 22 High) levels and above which it could extend gains 123.99 (June 26 High) levels. To the downside immediate support might be located at 122.45 (Today’s Low) below that at 122.11 (June 28 Low) levels.
(Market News Provided by FXstreet)