FXStreet (Bali) – Despite opening with a 150+ bearish gap from a NY close of 123.90, the USD/JPY exchange rate has remained offered outright after facing macro support at 122.50, level where more solid bids have emerged.
The Japanese Yen looks set to be one of the top performers earlier this week, as negotiations between Greece and international creditors broke down, leading to Greek PM Tsipras to call for a referendum over the latest bailout proposals by the international creditors community on July 5th, which has subsequently forced the Greek authorities to shut down banks for the coming week, with capital controls (withdrawal limits of 60 euros/day) proposed and applicable from Tuesday.
USD/JPY meets first bear target at 122.50
Valeria Bednarik, Chief Analyst at FXStreet, notes: “The USD/JPY gapped strongly down on safe-haven demand amid ongoing Grexit fears, with the pair challenging this June low of 122.45 at the opening. The Japanese yen will likely remain buoyed this Monday, as stocks are poised to fall.”
“Later on in the week, the US will release its monthly employment figures in the form of the Nonfarm Payroll report, something that usually has a strong impact on the USD/JPY pair. Nevertheless, this time may be different as market attention will be 100% focused on Greece”, Valeria adds.
Valeria sees “a break below the mentioned 122.45 level should fuel the decline as it will likely trigger stops, with the pair probably extending its decline down to 121.05, its 100 DMA over the upcoming sessions.”
(Market News Provided by FXstreet)