After yesterday's brief pause, the USD/JPY pair came under some fresh selling pressure on Tuesday and is now placed at near two-week lows around 110.90 region.
Spot maintained its offered tone for the third consecutive session amid a fresh wave of global risk-aversion trade on news reports that Greece threatened to opt out of £7.5bn in debt repayments due in July if creditors cannot agree on debt relief.
• Greek Govt Spox denies reports that Greece is considering rejecting tranche
This coupled with N. Korea's warning of conducting more missile tests in the coming days, and political uncertainty stemming out of the upcoming UK general election, provided an additional boost to the Japanese Yen's safe-haven appeal and collaborated to the pair's slide back below the 111.00 handle.
Meanwhile, market seems to have largely ignored broad based US Dollar strength and Komeito Party leader Yamaguchi comments, squashing hopes of any major change in the BoJ's current accommodative monetary policy stance. Moreover, today's mixed Japanese macro data also went unnoticed, with the broader market risk-sentiment being a key factor weighing on the major.
Today's US economic docket features the release of Core PCE Price Index, Personal Income / Spending data, and CB's Consumer Confidence Index, and would be looked upon for some fresh impetus later during the NA session.
Technical levels to watch
On a sustained weakness below 110.75 level (session low), the pair is likely to aim back towards multi-week lows support near 110.25 level before eventually dropping to the key 110.00 psychological mark. On the flip side, any recovery attempts beyond the 111.00 handle now seems to confront fresh supply near 111.25-30 area, above which a bout of short-covering could lift the pair beyond mid-111.00s resistance towards its next major hurdle near 111.75-80 region.
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