FXStreet (Mumbai) – The US dollar struggles for an upper edge over the Japanese currency in the mid-Asian session, with USD/JPY swinging back above 123 handle. The major erased losses and trades flat as traders moved past NFP release and now await Sunday’s Greek bailout referendum.
USD/JPY rises from 123.35
Currently, the USD/JPY pair trades flat at 123.09, hovering close to highs reached at 123.14. The dollar-yen extends its recovery amid low volumes as US markets remain closed today on an Independent Day holiday.
Moreover, the pair is likely to consolidate previous losses after the greenback lost footing on Thursday following the release of US jobs data with the crucial NFP figures falling shy of estimates.
US non-farm payrolls increased by 223,000 during the sixth month of the year, the Labor Department said. Markets had anticipated a 233,000 result. Meanwhile, markets eye Sunday’s Greek referendum which may provide fresh cues on the pair.
Karen jones, Chief analyst at Commerzbank, notes, “Recently we saw an emphatic rejection from the 124.46 level and will need to regain this resistance to refocus attention on the 125.86 June high. Note however the intraday Elliott wave is now more negative and suggesting rallies will terminate circa 122.90 and our bullish bias is wavering.”
USD/JPY Technical Levels
To the upside, the next resistance is located 123.25 (July 1 High) levels and above which it could extend gains 123.44 (June 22 High) levels. To the downside immediate support might be located at 122.81 (Today’s Low) below that at 122.10 (June 29 Low) levels.
(Market News Provided by FXstreet)