USD/JPY: After Greek referendum, Bulls defying gravity on 122 handle?

FXStreet (Guatemala) - USD/JPY is currently trading at 122.74 with a high of 122.76 and a low of 122.53.

USD/JPY has remained better bid and made decent ground overnight with a weaker greenback across the board despite the uncertainties over Greece and has taken on extra demand in the Tokyo open.

USD/JPY price action

USD/JPY has made a valiant recovery in the wake of the Greek referendum's results when the price opened the week at 121.97 and made subsequent lows of 121.85 before making its was to 122.92 over the course of the European and US markets joining the arena. 122.82 was the next high made after some eager supply while bulls protected 122.30 level before 122.74 was made at time of writing in Asia today.

USD/JPY fundamentals

USD/JPY is subject to the BoJ's continued 2% inflation target and QQE programme while the Yen is otherwise supported in a risk-off environment, despite the counter trade off that we are witnessing in subdued markets that are relieved on the developments between the Greeks and their creditors who have so far been sympathetic to the Greek public's decision and are very well prepared to review subsequent proposals from Athens in the hope of securing a deal and keeping Greece in the Eurozone project. Further ahead, we have the FOMC minutes as the main event later this week while tonight brings us the RBA interest rate decision.

USD/JPY technical conditions

USD/JPY has been on a recovery vs supply that contains the major at Friday Us closing prices with probes met with urgency at and ahead of 122.90. Technically, Valeria Bednarik, chief analyst at FXStreet noted whilst the technical indicators are turning south below their mid-lines at these levels of resistance, maintaining the risk towards the downside. "A break below 122.00 should lead to a downward extension towards 121.20, the 100 DMA."

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