FXStreet (Mumbai) – The Japanese currency continues to outperform the US dollar in early moves, with USD/JPY extending recovering near 122.50 levels. The major bounced-off a dip below 122 barrier, although remains undermined as the yen bulls remain in control amid increasing risk-off sentiment across the Fx board after the Greeks voted to refuse further austerity measures, conditions requested from a debt-ridden country by international creditors.
USD/JPY rises from 121.89
Currently, the USD/JPY pair trades -0.23% lower at 122.52, retracing from fresh six-week lows reached at 121.89 in a bid to fill in the overnight gap. The yen gave back more than half its gains, although keeps the edge versus the American dollar at Tokyo open, as traders flock to safety-havens such as gold, treasuries, yen etc., after uncertainty gripped the markets as the Greek referendum ended in landslide ‘NO’ victory for Greek government led by Tsipras.
A No vote implies the ECB will cancel Greek bank funding which then hastens a Grexit. Greek Prime Minister Alexis Tsipras is reportedly holding an emergency meeting on banking sector liquidity on Monday.
In the week ahead, Greek saga will continue to remain in the spotlight while Fed minutes release will also be closely watched for hints on the timing of the Fed rate-hike.
USD/JPY Technical Levels
To the upside, the next resistance is located 122.73 (June 30 High) levels and above which it could extend gains 123.20 (June 29 High) levels. To the downside immediate support might be located at 122.10 (June 29 Low) below that at 121.89 (July 5 Low) levels.
(Market News Provided by FXstreet)