FXStreet (Mumbai) – The yen lost its footing versus the US dollar in the early European trades, lifting USD/JPY to fresh session highs just shy of 123 handle. The yen reversed gains as markets looks more upbeat over a Greek deal being clinched today at the Euro group meeting, hence eroding safe-haven appeal of the Japanese currency.
USD/JPY lifted on Greece hopes
Currently, the USD/JPY pair trades 0.10% higher at 122.84, hovering close to fresh session highs reached at 122.89 last hours. The yen gave back previous gains and fell in red versus the greenback as traders now believe that an 11th hour deal is likely to be struck between Greece and its international creditors, thereby easing risk-off moods and diminishing safe-haven demand for the Japanese yen.
However, the upside looks restricted by persisting broad US dollar softness on the back of strengthening EUR/USD. The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies trades -0.28% lower at 94.05, retracing from 93.99 session lows.
Looking ahead this week, on the US data space, besides US GDP revision, we have May existing home sales on today, followed by May durable goods orders and new home sales on Tuesday, May personal income and consumer spending on Thursday and then the final June reading on the University of Michigan consumer sentiment survey on Friday.
USD/JPY Technical Levels
To the upside, the next resistance is located 123 levels and above which it could extend gains 123.25 (June 19 High) levels. To the downside immediate support might be located at 122.49 (June 18 Low) below that at 122 levels.
(Market News Provided by FXstreet)