FXStreet (Edinburgh) – After reaching session tops in the 123.80 area, USD/JPY is now giving away some pips and returning to the 123.60 region.
USD/JPY firmer on USD bids
The buying interest around the dollar remains well and sound at the end of the week so far, although the 124.00 neighbourhood still appears elusive. Better performance from US Treasuries keeps bolstering the upside momentum in the pair, while market participants get ready for the key FOMC meeting due next week. A deterioration of the EU-Greece talks and not-so-fortunate comments on the euro by Chancellor A.Merkel are also collaborating with the USD momentum.
Data wise, mixed results in Japan in early trade seem to have removed bids for the yen, with the critical Tertiary Industry Index contracting 0.2% during April and Industrial Production gaining 1.2% during the same period. On tap in the US docket today will be the flash gauge of the consumer sentiment by the Reuters/Michigan index, expected to have improved a tad to 91.5 for the current month.
USD/JPY relevant levels
The pair is up 0.22% at 123.70 with the next resistance at the psychological level at 124.00 followed by 124.63 (high Jun.10) and then 125.59 (high Jun.8). On the flip side, a breakdown of 122.46 (low Jun.10) would aim for 121.73 (low May 26) and finally 121.45 (low May 25).
(Market News Provided by FXstreet)