Greenback regains its mojo

While the euro was the main point of focus on the back of the developments around Greece, the greenback was a quiet achiever and managed to regain some ground against the majors.

Greenback
Source: Bloomberg

Some positive housing data out of the US supported the greenback as existing home sales came in much better than expected. USD/JPY caught a bit of a tailwind from the whole situation and finally came off its base in the ¥122.50 region.

A disappointing flash manufacturing PMI out of Japan today also helped the situation as it caused some yen weakness. USD/JPY had a great run after finding support in May from around the ¥119.00 region and managed to climb to within striking distance of ¥126.00.

Unfortunately, the rally stalled in that region and the pair has come under pressure. This resulted in some consolidation around the ¥123.00 region. It now seems traders are keen to get involved in the pair again as it finds support from the 38.2% retracement of the recent rally.

The next resistance is in the ¥124.25 region, which is the 23.6% retracement of that move. A move above this resistance could see the pair challenge ¥125.90. On the calendar today we have durable goods orders due.

USD/JPY
Click to enlarge

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