FXStreet (Mumbai) – The US dollar manages to recover lost ground somewhat versus the Japanese yen, now pushing USD/JPY towards 123 levels. The major extends its recovery from six-week lows reached on Greek referendum led flight to safety which boosted the JPY bulls across the board.
USD/JPY extends gains from 122.52
Currently, the USD/JPY pair trades -0.09% lower at 122.67, finally filling up the bearish gapped seen in the overnight trades. The USD bulls seems to have jumped back into the bids, lifted the USD/JPY pair from 121.89 – six week lows and now recovering most losses as risk-off sentiments on Greek referendum and possible Grexit fade away from investors’ minds, diminishing yen’s appeal as a safe-haven asset.
The yen bulls were in complete control versus the greenback in early moves as traders flocked to safety-havens such as gold, treasuries, yen etc., after uncertainty gripped the markets as the Greek referendum ended in landslide ‘NO’ victory for Greek government led by Tsipras.
A NO vote implies the ECB will cancel Greek bank funding which then hastens a Grexit. Greek Prime Minister Alexis Tsipras is reportedly holding an emergency meeting on banking sector liquidity on Monday.
In the week ahead, Greek saga will continue to remain in the spotlight while Fed minutes release will also be closely watched for hints on the timing of the Fed rate-hike.
USD/JPY Technical Levels
To the upside, the next resistance is located 122.79 (June 28 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)