USD/JPY recovers to 125.40, shrugs off USD concern rumour

FXStreet (Mumbai) - The US dollar recovered partial losses versus the Japanese currency in European session, with USD/JPY bouncing-off 125 barrier. The US dollar was broadly sold-off amid rumours over President Obama’s concerns about stronger buck, only to quickly retreat from lows after an US official clarified the chatter.

USD/JPY keeps moderate losses

Currently, the USD/JPY pair trades -0.17% lower at 125.38, recovering from 125.00 session lows. The USD/JPY pair pared losses as the US dollar recovered lost ground veruss its major counterparts after an US official rubbished the rumours and noted that President ‘Obama didn't say strong dollar was a problem’.

The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies trades flat at 96.35, retreating from session lows reached at 95.98 post the rumours hit the wires.

Moreover, the major keeps red also after yen was boosted on the back of better than expected Japan’s revised growth forecasts for the first quarter. Japan's economy grew 1.0% in the January-March period, according to revised data from Japan's Cabinet Office on Monday, having initially reported growth of 0.6% Q1 2015.

USD/JPY Technical Levels

To the upside, the next resistance is located at 125.68 (Today’s High) levels and above which it could extend gains 125.86 (June 5 High) levels. To the downside immediate support might be located at 125 (Today’s Low) below that at 124.32 (June 5 Low) levels.

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