FXStreet (Mumbai) – The USD/JPY breached the June 2007 high of 124.12 and ran into offers at 124.30 after which it pared gains to trade at 123.60, thereby triggering US dollar sales across the board.
USD/JPY driving market’s appetite for the USD
The sharp rise in the USD/JPY pair in the last few trading sessions has made the pair a cynosure of all eyes. The market’s overall appetite for the US dollars is being heavily influenced by the rise/fall in the USD/JPY pair. In the previous session, the rise in the USD/JPY to near 123.80-124.00 levels trigger a broad based rally in the USD.
On similar lines, a minor correction from the high of 124.30 to 123.60 seen in the last hour or so helped push other major currencies to recover part of their losses against the US dollar. Ahead in the day, the traders could continue to base their decisions on movements in the USD/JPY pair.
USD/JPY Technical Levels
The immediate support is seen at 123.30, under which the pair could drop to 122.76 levels. On the other hand, a break above 124.30 could open doors for a rise to 125.00 levels.
(Market News Provided by FXstreet)