FXStreet (Edinburgh) – The recovery in the greenback keeps running out of vigour on Tuesday, although USD/JPY manages well to keep the trade above the 124.00 handle.

USD/JPY supported at 124.00

The ongoing correction lower from recent fresh cycle peaks around 125.80 have found solid buffer in the 123.80/124.00 band, allowing the current bounce and attempt to consolidate in the 124.20 area.

Significant data releases are scarce in both Japan and the US in a context where volatility remains highly unusual and mainly driven by Greek headlines. The greenback, in the meantime, is unable to capitalize today’s positive performance of Treasuries, usually a source of USD-strength.

USD/JPY levels to watch

The pair is now losing 0.27% at 124.14 facing the next support at 123.86 (low Jun.9) ahead of 123.78 (low Jun.4) and then 123.60 (low May 29). On the flip side, a breakout of 124.74 (high Jun.9) would open the door to 125.68 (high Jun.8) and finally125.86 (2015 high Jun.5).

The recovery in the greenback keeps running out of vigour on Tuesday, although USD/JPY manages well to keep the trade above the 124.00 handle…

(Market News Provided by FXstreet)

By FXOpen