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USD/JPY: Bulls try again while Greece weighs


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FXStreet (Guatemala) – USD/JPY is trading at 122.77 with a high of 122.95 and a low of 122.67.

USD/JPY is trading with a bearish bias still although the bulls attempted to save face at the start of the week with a bullish gap that has no been filled as often as they are. However, the bulls are perking up again in the Tokyo open and 123 is on the map.


Greek risks to USD/JPY


However, there is plenty of risk about, and this should be favouring the Yen, with the Greek dead line fast approaching and crunch time is on the 30th June. EU ministers are gathering today in what appears to be a final attempt to work things out while it has been reported that Athens have come forward with a final proposal over the weekend. Tsipras has been reported to be meeting with Eurogroup heads also and before the ‘final’ summit.


Meanwhile the greenback is likely to be dragging its heals on its own domestic fundamentals on the back of the recent dovish FOMC statement that came last week. The FOMC have downgraded their forecasts of the Fed funding rate for 2016/17 by 25 basis points. In respect of the BoJ, we have a press conference this week from the Central Bank to keep ears on.


USD/JPY remains soft


Technically, we remain holding just about within the confines of last week’s trading range with lows of 122.47 in view. Despite the bulls efforts, the bears remain broadly in control and a break of this would open avenues to 121.90/00 support, guarding 120.00 Major resistance comes as 124.10/15.