- Japan's foreign reserves fell to $1.24 trillion at the end of June, the Ministry of Finance said on Tuesday. Japanese authorities did not conduct any intervention between May 28 and June 26, the ministry said earlier. Japanese FinMin Taro Aso said on Tuesday that the govt stands ready to respond to market developments over Greece, adding it was hard to foresee future developments.
- The US dollar index, trades 0.21% higher at session highs of 96.63. Weakening EUR/USD on the back of Grexit fears continues to boost the upside in the greenback.
- Meanwhile, yen's demand as safe asset reduced as the risk-off sentiment seems to have eased-off, despite ECB's tougher stand for Greek banks after the ECB decided to leave ELA ceiling for Greek banks unchanged at €89 billion, while adjusting the haircuts it applies to the assets which Greek banks can use as collateral.
- 123.00 is expected to cap USD/JPY today. The pair is currently trading at 122.61. Later today, markets await Euro group meetings with Greece on the top of the Agenda while a set of US macro data will also be eyed.
R1: 122.91 (Session High July 6)
R2: 122.96 (61.8% of 123.75-121.70)
R3: 123.04 (Daily Tenkan)
Support Levels:
S1: 121.63 (Daily Low Jul 6)
S2: 121.55 (61.8% Fibo 118.89-125.86)
S3: 120.64 (Daily Low May 22)
