13 Jul 2015
USD/JPY shoots beyond 123 on Greek deal led risk-on
FXStreet (Mumbai) - The USD/JPY pair reversed losses and pierced through the 123 barrier in the early European trades, as the USD bulls jumped back into the bids following the news that finally a Greek deal was reached, fuelling risk-on trades and reducing demand for safe-haven in yen.
USD/JPY rises from 122.62
Currently, the USD/JPY pair trades 0.13% higher at 122.96, quickly retracing from 123.09 highs. The major erased losses seen in Asia and stormed its way higher as Greek deal news lifted market sentiment, thereby spurring demand for higher yielding assets.
Over the weekend’s emergency meeting the Eurozone leaders offered a 72-hours deadline (till July 15) to Greece for implementing the reforms in exchange for further bailout funds before a temporal Grexit is back on the table.
Looking ahead, markets await fresh updates from the EU Summit press conference while BOJ monetary policy decision due this week amid a host of US macro data will also be closely watched for fresh cues on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 123.20 (July 3 High) levels and above which it could extend gains 123.50 levels. To the downside immediate support might be located at 122.42 (Today’s Low) below that at 122.19 (July 12 Low) levels.
USD/JPY rises from 122.62
Currently, the USD/JPY pair trades 0.13% higher at 122.96, quickly retracing from 123.09 highs. The major erased losses seen in Asia and stormed its way higher as Greek deal news lifted market sentiment, thereby spurring demand for higher yielding assets.
Over the weekend’s emergency meeting the Eurozone leaders offered a 72-hours deadline (till July 15) to Greece for implementing the reforms in exchange for further bailout funds before a temporal Grexit is back on the table.
Looking ahead, markets await fresh updates from the EU Summit press conference while BOJ monetary policy decision due this week amid a host of US macro data will also be closely watched for fresh cues on the pair.
USD/JPY Technical Levels
To the upside, the next resistance is located 123.20 (July 3 High) levels and above which it could extend gains 123.50 levels. To the downside immediate support might be located at 122.42 (Today’s Low) below that at 122.19 (July 12 Low) levels.