FXStreet (Mumbai) – The US dollar keeps the overnight range against the Japanese currency at Tokyo open, with USD/JPY stuck around 123.60 levels. The yen keeps a slight edge over the greenback despite easing prices pressures in Japan in June highlighting the Bank of Japan’s (BoJ) dilemma as it tries to 2% achieve inflation.
USD/JPY faces stiff resistance at 5-DMA
Currently, the USD/JPY pair trades -0.10% lower at 123.52, with 10-DMA located at 123.36 acting as a crucial support so far. The pair maintains an offered tone with the yen resilient on the release of mixed Japanese macro data.
Japan’s national core CPI rose 0.1% y/y in May, according to the Statistics Bureau, easing from 0.3% in the previous month, but coming in slightly stronger than the market forecast of no change in the price index. Tokyo’s more timely CPI gauge rose 0.1% in June, as forecast, after rising 0.2% in May.
However, household spending rose 4.8% y/y in May, stronger than a 3.5% rise expected while unemployment rate held at a record low 3.3% in May.
Surprisingly, the major also remained little affected by a host of US macro data released on Thursday as inconclusive talks on Greece at yesterday’s Euro group meeting continues to weigh on market sentiments, supporting the safe-bids in yen.
Meanwhile, traders now await revised consumer sentiment data due later today for further cues on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 123.96 (June 25 High) levels and above which it could extend gains 124.19 (June 23 High) levels. To the downside immediate support might be located at 123.32 (June 23 Low) below that at 123 levels.
(Market News Provided by FXstreet)