USD/JPY finds resistance at 123.20 but hold to gains

FXStreet (Córdoba) - USD/JPY rose to 123.23 and reached the strongest level since Monday boosted by US economic data but then pulled back. Recently it fell to 122.88. The area around 122.85/90 capped the retreat and currently it is hovering around 123.00.

The yen rose in the market after Tsipras speech and amid retreats of US stocks and US Treasuries. Main Wall Street indexes moved off session highs but were still on positive territory. The Dow Jones was up 0.66% and the Nasdaq was gaining 0.56%.

USD/JPY bullish but facing resistance

The pair still holds a bullish tone in the short-term but is facing a strong resistance around 123.20. A break higher could trigger a rally, probably toward Friday’s closing price. USD/JPY opened the week with a bearish gap that is still open. The pair needs to climb above 123.70 in order to fill it.

USD supported by data, NFP eyed

Today’s economic reports form the US where mostly better-than-expected, including the ADP that showed an increase in private payrolls by 238.000, above the 218.000 expected. Manufacturing data indicated that the economy continues to expand.

Trader’s attention now turns to tomorrow’s releases that will include the official employment report (non-farm payrolls and unemployment rate) and also jobless claims data.

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