FXStreet (Mumbai) – The bid tone in the USD/JPY pair increased in the Asian hours, lifting the major to fresh session highs near 123.60 levels. The major climbed higher on a sudden pick up in buying seen in the US dollar while traders continue to cheer upbeat US macro news.
USD/JPY pushing higher towards 124
Currently, the USD/JPY pair trades 0.13% higher at 123.53, hovering close to fresh session highs reached at 123.59 some minutes ago. The US dollar ran through fresh bids heading in to mid-Asia, driving USD/JPY to a new three-day high. The major remains supported following a better US existing home sales reading on Monday which adds to signs of strengthening US economic recovery.
American existing home sales surprised on the upside on Monday, as the National Association of Realtors (NAR) revealed that existing home sales rose 5.1% in May to 5.35 million – the highest pace since 2009. The figure beat the 5.28 million unit sales pace the market expected.
Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies trades edged 0.09% higher to fresh session highs of 94.63.
The yen also lost footing versus the greenback as traders remain optimistic over a Greek deal to be reached as Euro group reconvenes meeting later this week following failed talks at the EU Summit on Monday.
Looking ahead this week, traders are keeping an eye out for May’s durable goods release and the third estimate of the first-quarter US GDP growth, scheduled for Tuesday and Wednesday respectively. While ongoing Greek talks are likely to remain in the spotlight in the week ahead.
USD/JPY Technical Levels
To the upside, the next resistance is located 123 .61 (June 18) levels and above which it could extend gains 123.83 (June 12 High) levels. To the downside immediate support might be located at 123 below that at 122.57 (June 22 Low) levels.
(Market News Provided by FXstreet)