FXStreet (Edinburgh) – After dipping to the mid-122.00s following BoJ Kuroda’s comments, USD/JPY is now looking to regain the 123.00 handle albeit at a snail pace.
USD/JPY weaker on JPY-strength
The Japanese currency has intensified its strength after Governor H.Kuroda argued that it is hard to see the real effective exchange rate of the yen losing further ground, at the time that hinted at the possibility that a Fed’s lift-off could be already priced in at current levels. Spot reacted accordingly, extending its correction lower from recent fresh cycle tops around 125.80 to today’s troughs around 122.50.
In the data sphere, and supporting the case for a stronger yen, key machinery Orders in Japan surpassed forecasts during May, expanding 3.8% MoM and 3.0% on a yearly basis; further data showed Domestic Corporate Goods Price Index contracting less that estimated 2.1% on a year to May.
USD/JPY key levels
At the moment the pair is losing 1.27% at 122.77 facing the next support at 122.46 (low Jun.10) followed by 122.37 (Kijun Sen) and finally 122.04 (high Mar.10). On the flip side, a break above 123.16 (hourly high Jun.10) would expose 123.29 (38.2% of 124.63-122.46) and then 123.55 (50% of 124.63-122.46).
(Market News Provided by FXstreet)