FXStreet (Mumbai) – The US dollar bounced-off a brief dip below 124 handle and remains in red versus the Japanese yen in the European morning, with USD/JPY back above 124 handle, in a knee-jerk reaction to Bank of Japan’s (BOJ) board member Harada’s comments crossing the wires. While markets are likely to track USD moves amid a data-empty European session ahead, awaiting fresh cues from US economic data due later in the day.
USD/JPY drops to 123.99 lows on BOJ Harada’s comments
Currently, the USD/JPY pair trades -0.08% lower at 124.17, retreating from fresh session lows reached at 123.99 some minutes ago. The USD/JPY pair snapped gains and fell in red after BOJ Harada’s comments on the exchange rate, stating that ‘excessive yen strength has been corrected ‘while also noting that BOJ might fail to hit 2% inflation by h1 of 2016.
Earlier in Asia, USD/JPY resumed its upbeat momentum on upbeat ADP jobs and trade data from the US released yesterday, completely ignoring dismal US ISM non-manufacturing PMI report, which boosted the sentiment around the US dollar.
Meanwhile, in absence of significant macro data from Japan this session, markets now turn their attention towards a set of US data releases due later in the day for further momentum.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.69 (June 3 High) levels and above which it could extend gains 124.93 (June 1 High) levels. To the downside immediate support might be located at 123.99 (Today’s Low) below that at 123.74 (June 2 Low) levels.
(Market News Provided by FXstreet)