USD/JPY turns negative below 124.50

FXStreet (Mumbai) - The US dollar wiped out gains and trades modestly versus the Japanese currency in Asian session, knocking-off USD/JPY below 124.50 levels. The US dollar peaks in the red zone as the yen extends its post-NFP recovery, riding higher on upbeat Japan’s final GDP print released on Monday.

USD/JPY drops from 124.70

Currently, the USD/JPY pair trades flat at 124.44, easing off session highs at 124.74 levels. The USD/JPY pair shaved-off gains largely on the back of broad-based US dollar weakness, in a corrective slide following better than expected US non-farm payrolls print.

The US dollar index, measuring the relative strength of the greenback against a basket of six major currencies trades -0.21% lower at 95.01, retreating from session highs reached at 95.35.

Moreover, the major remains pressured as the yen remains well bid as markets continue to cheer the latest better-than expected Japanese growth numbers, while shrugging off US labour market conditions report completely.

Meanwhile, traders will now wait for Thursday's US retail sales which will provide fresh cues for the rate hike timing ahead of the Fed's meeting June 16-17.

USD/JPY Technical Levels

To the upside, the next resistance is located at 124.74 (Today’s High) levels and above which it could extend gains 125 levels. To the downside immediate support might be located at 124.28 (June 8 Low) below that at 123.85 (June 1 Low) levels.

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