FXStreet (Mumbai) – The yen erased losses and regained footing versus the US dollar in mid-European session, dragging USD/JPY from fresh session highs to 122.50 levels. The major stalled its upward moves towards 123 handle and turned negative largely on increasing risk-off sentiments, heading into the Euro group meeting, which boosted the safe-havens bids for the yen.
USD/JPY rejected at 122.88
Currently, the USD/JPY pair trades -0.05% lower at fresh session lows at 120.50, unable to hold gains at higher levels. The USD/JPY pair reversed gains and fell in to red, as the JPY bulls took back control pushing the yen higher as the Euro group meeting nears, spurring risk-off bets.
The major edged lower despite the persistent strength in the US dollar versus its major competitors largely backed by tumbling EUR/USD. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.61% higher 97.
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)