FXStreet (Mumbai) – The US dollar keeps its upbeat momentum intact versus the Japanese yen in European morning, lifting USD/JPY towards session highs printed at 122.81. The major climbs further towards 123 handle mainly driven by broad based US dollar strength amid ongoing Greek debt concerns as markets await Euro Summit for fresh insights.
USD/JPY supported at 122.57
Currently, the USD/JPY pair trades 0.12% higher at 122.72, struggling to break above 122.81 highs. The US dollar continues to remain boosted on the back of tumbling EUR/USD, now testing 1.1000 levels, as traders remain on the side line ahead of the key Euro group meetings with Grexit – the main concern.
The US dollar also received support from improving non-manufacturing sector activity as per the ISM data released in the US session. The headline indicator rebounded to 56 points in June points from the 55.7 seen in May, which had been the lowest print since April 2014.
However, safe-haven bids in yen amid ongoing Greek woes continue to keep a check on USD/JPY. Meanwhile, the US dollar index, measuring the relative strength of the greenback against a basket of six major currencies, trades 0.46% higher at fresh session highs of 96.91.
Later today, markets await Euro group meetings with Greece on the top of the Agenda while a set of US macro data will also be eyed.
USD/JPY Technical Levels
To the upside, the next resistance is located 122.94 (July 6 High) levels and above which it could extend gains 123.20 (June 29 High) levels. To the downside immediate support might be located at 122.10 (June 29 Low) below that at 121.89 (July 5 Low) levels
(Market News Provided by FXstreet)