FXStreet (Mumbai) – The US dollar was better bid versus the Japanese yen in mid-Asia, keeping USD/JPY around the upper band of 122 handle. The major extends gains for the second straight session as the USD bulls remain supported backed by a rebound in the non-manufacturing sector in the US, while gains remained in check as the safe-haven demand on Greece concerns continue to underpin the Japan currency.
USD/JPY edged higher on stronger USD
Currently, the USD/JPY pair trades 0.11% higher at 122.70, retracing from 122.81 highs in early Asia. The US dollar regained lost footing and edged slightly higher this session versus the yen as the greenback received support from improving non-manufacturing sector activity as per the ISM data released in the US session. The headline indicator rebounded to 56 points in June points from the 55.7 seen in May, which had been the lowest print since April 2014.
Moreover, weakening EUR/USD on the back of Grexit fears continues to boost the upside in the greenback. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.21% higher at session highs of 96.63.
Meanwhile, yen’s demand for safety asset reduced as the risk-off sentiment seems to have eased-off, despite ECB’s tougher stand for Greek banks after the ECB decided to leave the Emergency Assistance Liquidity (ELA) ceiling for Greek banks unchanged at €89 billion, while adjusting the haircuts it applies to the assets which Greek banks can use as collateral.
Later today, markets await Euro group meetings with Greece on the top of the Agenda while a set of US macro data will also be eyed.
USD/JPY Technical Levels
To the upside, the next resistance is located 122.94 (July 6 High) levels and above which it could extend gains 123.20 (June 29 High) levels. To the downside immediate support might be located at 122.10 (June 29 Low) below that at 121.89 (July 5 Low) levels
(Market News Provided by FXstreet)