USD/JPY consolidates below 124

FXStreet (Mumbai) - The US dollar extends its corrective slide versus the Japanese yen in the mid-Asian trades, with USD/JPY hovering below 124 handle, as the yen continues its recovery mode following a week-long run of losses that that brought the Japanese currency to its weakest level since 2002.

USD/JPY capped by 5-DMA

Currently, the USD/JPY pair trades -0.16% lower at 123.93, retreating from fresh session highs reached at 124.24in early Asia. The USD/JPY pair keeps losses as the greenback remains undermined by strengthening EUR/USD as markets remain optimistic about Greece and also continue to cheer the recent upbeat EZ CPI print.

Moreover, the yen also staged a solid comeback versus the US dollar after disappointing factory orders data from the US dragged the greenback lower across the board. Orders placed with all US manufacturers fell 0.4% in April, sharper than the 0.1% decrease the market had been expecting, but following an upwardly revised 2.2% gain in March.

Meanwhile, markets now turn their focus towards US trade balance and ISM non-manufacturing PMI report for further momentum.

USD/JPY Technical Levels

To the upside, the next resistance is located at 124 levels and above which it could extend gains 124.24 (5-DMA) levels. To the downside immediate support might be located at 123.74 (June 2 Low) below that at 123.51 (10-DMA) levels.