23 Jul 2015
USD/JPY: tentative bids on 124 handle in mixed Tokyo open
FXStreet (Guatemala) - ="">USD/JPY is currently trading at 124.06 with a high of 124.15 and a low of 123.92.
Asian equities opened mixed with Nikkei 225 up 0.4% and the USD/JPY is a slow burner on a quiet start in the Asian session mid week. The price oscillates around the 124 handle with a slight bid on the back of a minor recovery that was made towards the close of the US shift and some follow through in dollar strength across the board.
The greenback was back in demand on a soft performance from the commodity sector while risk appetite wanes in less volatile markets. The Greek debacle however remains in recovery mode also as the vote in parliament paves the way for a third bailout. However, the Yen may only be on the back foot so long should there be further delays, disruptance, disagreements and uncertainty of the outcome for an agreed package for Greece. Furthermore, the saga has not left the EZ project in bad light and just recently the Greek opposition leader, Meimarakis, has voiced concerns that the Grexit risk still exists.
From the calendar, we had the release of the trade balance for Japan that arrived as -Y69.0bn vs. +Y45.8bn that was expected. Meanwhile, the Japanese government have lowered their CPI forecast to 0.6% in 2015 where the previous was 1.4% and 1.6% in 2016 where the previous was 1.8%.
USD/JPY in a bull channel, little data left to go
For the US and rest of the week, we have just New Home Sales data for June as well as Markit Manufacturing for July left. Technically, the major is contained higher in the trend channel from 120.40 support with targets as 125.80 through the psychological 125 handle.
Asian equities opened mixed with Nikkei 225 up 0.4% and the USD/JPY is a slow burner on a quiet start in the Asian session mid week. The price oscillates around the 124 handle with a slight bid on the back of a minor recovery that was made towards the close of the US shift and some follow through in dollar strength across the board.
The greenback was back in demand on a soft performance from the commodity sector while risk appetite wanes in less volatile markets. The Greek debacle however remains in recovery mode also as the vote in parliament paves the way for a third bailout. However, the Yen may only be on the back foot so long should there be further delays, disruptance, disagreements and uncertainty of the outcome for an agreed package for Greece. Furthermore, the saga has not left the EZ project in bad light and just recently the Greek opposition leader, Meimarakis, has voiced concerns that the Grexit risk still exists.
From the calendar, we had the release of the trade balance for Japan that arrived as -Y69.0bn vs. +Y45.8bn that was expected. Meanwhile, the Japanese government have lowered their CPI forecast to 0.6% in 2015 where the previous was 1.4% and 1.6% in 2016 where the previous was 1.8%.
USD/JPY in a bull channel, little data left to go
For the US and rest of the week, we have just New Home Sales data for June as well as Markit Manufacturing for July left. Technically, the major is contained higher in the trend channel from 120.40 support with targets as 125.80 through the psychological 125 handle.