FXStreet (Mumbai) – The yen regained control against its US counterpart in mid-Asian session, sending USD/JPY closer towards 122 handle. The major erased gains seen in the last US session and fell back in red as the latest Greece developments coupled with China shocker spurred safe-haven bids for the Japanese currency. While above estimates Japanese current account data also lent a helping hand to the yen.
USD/JPY drops from 122.46
Currently, the USD/JPY pair trades -0.30% lower at 122.19, having posted day’s high at 122.56 and day’s low at 121.98. The USD/JPY pair edged lower as rising worries over Grexit after EU set a 5-day final ultimatum for Greece to submit a new reform proposal paired with Chinese ongoing equities rout with 50% of the companies suspended from trading soured sentiments further, which boosted safe-haven assets such as yen.
Moreover, the greenback erased trimmed gains and retreated slightly from five-week highs reached versus its major peers in Asia, adding to the downside in USD/JPY. While better than expected current account data from Japan also bolstered the yen further. Japan’s current account reached a surplus of JPY1.881 trillion, better than the JPY1.542 trillion seen.
Moving ahead, markets remain focussed on Greece as talks continue today while Chinese developments will also be monitored. However, FOMC minutes will remain the major highlight for today.
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 121.72 (July 6 Low) below that at 121.48 (May 26 Low) levels.
(Market News Provided by FXstreet)