Risk-off trade sees a fall in USDJPY

As bullish economic data from Japan was published and increasing concerns over Greek debt talks backed safe-haven demand, the dollar fell against the yen on Friday.


Indeed, the pair USDJPY hit its lowest since June 22, at 123.22, before progressing to 123.46, declining by 0.14% in the process.


The expected support level will likely be at 122.54 (Monday 22 June’s low) while the resistance level should be at 123.97 (high of Thursday 25).


After a 5.5% fall in April, Japan’s household spending increased by 2.4% last month, higher than the expected 2.2% gain.


The consumer price index of Japan also increased by an annualized rate of 0.5% in May, 0.1% more than the expected hike.


On the other hand, pressure continued to build on market sentiment for negotiations between Greece and its creditors failed once again on Thursday.


As a reminder, Greece’s deadline for its 1.6 billion debt repayment to the International Monetary Fund ends next week on June 30.


If no bailout deal is found by then, Greece will risk going into default and out of the Eurozone.


The yen also gained on the euro with the EURJPY pair losing 0.22% to 138.22 while the dollar lost 0.5% and 0.4% against its loonie and aussie counterparts respectively.


Priscilla Camryn By: Priscilla Camryn
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