8 Jul 2015
USD/JPY off 7-week lows, near 121.50
FXStreet (Mumbai) - The yen continues to hammer the US dollar in mid-European session, dragging USD/JPY to fresh multi-week lows near 121 handle. The major was heavily offered in today’s trade in running as traders favoured the safe-havens such as yen on increased risk aversion triggered by latest development surrounding Greece and China. While markets anticipate dovish FOMC minutes which also weighs on the major.
USD/JPY drops from 121.60
Currently, the USD/JPY pair trades -0.85% lower at 121.5, having posted day’s high at 122.92 and day’s low at 121.32. The USD/JPY pair witnessed a 160 pips fall so far as the Japanese currency benefited from its traditional safe-haven status, as China and Greece add to global risk aversion on the markets and push investors to run for safer assets.
ANZ noted, "Chinese equities and Greek negotiations will dictate the fate of Australasian and European currencies respectively."
Moreover, the greenback also fell across the board on profit-taking, 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. 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 below that at 120.50 levels.
USD/JPY drops from 121.60
Currently, the USD/JPY pair trades -0.85% lower at 121.5, having posted day’s high at 122.92 and day’s low at 121.32. The USD/JPY pair witnessed a 160 pips fall so far as the Japanese currency benefited from its traditional safe-haven status, as China and Greece add to global risk aversion on the markets and push investors to run for safer assets.
ANZ noted, "Chinese equities and Greek negotiations will dictate the fate of Australasian and European currencies respectively."
Moreover, the greenback also fell across the board on profit-taking, 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. 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 below that at 120.50 levels.