FXStreet (Mumbai) – The US dollar recovered from session lows and erased partial losses versus the yen in the early European trades, with USD/JPY inching closer towards 124 barrier, as the greenback managed to regain footing against its major competitors while market now focus on the second reading of the Q1 US GDP data for further impetus.
USD/JPY trims losses
Currently, the USD/JPY pair trades -0.11% lower at 123.82, retreating from fresh session lows reached at 123.61 some time ago. The USD/JPY pair recovered partial losses as the US dollar erased most losses and trades flat across the board ahead of the Europe open. Traders moved past mixed unemployment claims and pending home sales data from the US released on Thursday and now eye US GDP numbers for confirmation of the recent USD strength.
The yen rebounded sharply from fresh twelve year lows and edged higher versus the greenback in Asia largely on the back of better than expected national core CPI from Japan which rose 0.3% y/y in April, a sharp deceleration from the 2.2% rise recorded in March, although beating expectations of only a 0.2% rise.
Moreover, Tokyo’s Core CPI figures also came in line with forecasts at 0.2% in April also lent a helping hand to the yen against the US dollar.
Meanwhile, markets now turn their focus towards the much anticipated US GDP figures for further USD moves while month-end positions unwinding may also take a toll on the major.
USD/JPY Technical Levels
To the upside, the next resistance is located at 124 levels and above which it could extend gains 124.47 (May 28 High) levels. To the downside immediate support might be located at 123.47 (May 28 Low) below that at 123 levels.
(Market News Provided by FXstreet)