FXStreet (Guatemala) – USD/JPY is currently trading at 122.93 with a high of 123.10 and a low of 122.94.
USD/JPY’s bid tone was put to the end on the last trading day for the US desks this week as traders went in to a long weekend after the Nonfarm Payrolls last flurry and before the Greek referendum taking place on Sunday in Europe, likely making for a busy Asia open.
USD/JPY price action
In Tokyo, bears are jumping on the downtrend’s precedent set overnight and has taken out the 123 handle at the time of writing. 123.70 capped the USD/JPY rally that was emerging from the last day of business in June from just below the 122 handle. The price shot down to test 123 before consolidating in the US’s afternoon until Asian desks in Tokyo arrived on the scene where the major now changes hands in 122.80’s.
USD/JPY fundamentals with Greece, US and Japan variables
Yen’s own domestics could see for a weaker currency with Japan’s giant pension funds seeking invest more aggressively in domestic equities. The Greek debacle is of course making for a safe haven of the Yen while the greenback is knocked down a level on the back of a disappointing Nonfarm Payrolls overnight. Some last minute activity in the major could spark off some choppiness in markets lacking liquidity while the US are off on a long weekend resting up for what could be a very volatile open next week.
USD/JPY technicals
Besides this set back, the overall picture is still bullish, even if we are due a correction within the broader bullish trend. Karen Jones, chief analyst at FXStreet explained that the ascending triangle pattern and the 128.15 upside measured target remains viable. “Recently we saw an emphatic rejection from the 124.46 level and will need to regain this resistance to refocus attention on the 125.86 June high. Note we have a 20 day ma at 123.51 and a near term resistance line at 123.70 and this is the near term resistance.” For the near term, Valeria Bednarik, chief analyst at FXStreet said that 122.00 is targeted on downside.
(Market News Provided by FXstreet)