USD/JPY rejected at 123.19, slips back to 122.60

FXStreet (Mumbai) – The US dollar halted its recovery and resumed its downside momentum against the Japanese currency in the late-Asian session, with USD/JPY falling back on the 122 handle. The major slipped deeper in red as fresh bid wave hit the Japanese currency heading into Europe as risk aversion amid Greek crisis continue to dominate markets.

USD/JPY drops from 123.19 session highs

Currently, the USD/JPY pair trades -1% lower at 122.64, backing-off from 123.19 highs. The dollar-yen pair snapped its recovery above 123 levels and slipped back near session lows at 122.45 as safe-haven bids for yen increased as markets continue to digest the recent Greek updates.

The Japanese currency is expected to an edge over the greenback on safe-haven appeal amid risk-off sentiment as Greek debt concerns continue to linger ahead of June 30 deadline to the IMF.

Greece is very close to exiting its current bailout program and defaulting on its debt to the IMF on Tuesday. At an extraordinary Euro group meeting on Saturday, the finance ministers rejected Yanis Varoufakis’s request to provide some extra time for the Greek government to hold the referendum.

Meanwhile, there was also some positive data out of Japan on Monday, with retail sales growing 3% year-on-year last month, the second-consecutive increase in sales. However, this positive news was offset by preliminary industrial production, which reportedly fell 2.2% over the same period, according to the Ministry of Economy, Trade, and Industry (METI).

USD/JPY Technical Levels

To the upside, the next resistance is located 123.44 (June 22 High) levels and above which it could extend gains 123.99 (June 26 High) levels. To the downside immediate support might be located at 122.45 (Today’s Low) below that at 122.11 (June 28 Low) levels.

The US dollar halted its recovery and resumed its downside momentum against the Japanese currency in the late-Asian session, with USD/JPY falling back on the 122 handle. The major slipped deeper in red as fresh bid wave hit the Japanese currency heading into Europe as risk aversion amid Greek crisis continue to dominate markets.

(Market News Provided by FXstreet)