FXStreet (Mumbai) – The US dollar extends its overnight side trend versus the Japanese currency at Tokyo open, keeping USD/JPY side lined below 124.50 levels. The major trades almost unchanged as upbeat PPI and Japanese core orders data fails to lift the sentiment around the Japanese yen. However, uncertainty surrounding Greece debt concerns may keep the safe haven appeal in yen boosted.
USD/JPY unmoved by Japan’s data
Currently, the USD/JPY pair trades flat at 124.39, clinging to the 124 handle. The USD/JPY pair extends its choppy trend from the US last session and trades muted amid broad US dollar weakness while Greece’s search for a deal favoured safe-haven assets such as yen.
The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies trades -0.08% lower at 95.09.
Moreover, markets shrugged off better than expected Japan’s core machinery orders and factory gate prices data with the yen showing no reaction whatsoever.
Machinery orders excluding ships and utility items rose 3.8% m/m in April, following a 2.9% rise in orders in March, coming in much stronger than the expected decline of 2.2%. While, Japanese producer price index rose 0.3% in May versus 0.2% expected.
Meanwhile, traders now shift their attention towards Thursday’s US retail sales which will provide fresh cues for the rate hike timing ahead of the Fed’s meeting June 16-17, in absence of significant US economic releases later today.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124.74 (June 9 High) levels and above which it could extend gains 125 levels. To the downside immediate support might be located at 124.28 (June 8 Low) below that at 123.86 (June 9 Low) levels.
(Market News Provided by FXstreet)