News & Data:
USD/JPY rallied overnight after Bank of Japan Governor Kuroda said that his comments last week were only in regard to the real effective exchange rate, not the nominal one and that he never said that he doesn’t want the Yen to weaken on that basis. The pair reached a high of 123.78 and then settled in a 123.50-65 range for most of the session. Volatility in USD/JPY is likely to remain lower ahead of the FOMC meeting tomorrow evening. Intraday support at 123.20, 122.80 and then 122.40. To the topside, 124.20 is now the key short-term resistance level, followed by 124.60.
The Euro remains quite resilient despite all the negative news about Greece. EUR/USD spent the Asian session in a 1.1260-80 range. Immediate resistance eyed at 1.13, while decent selling interest is reported ahead of the 1.1350 level. To the downside, expect solid in the 1.1180/1.12 area, with 1.1150 now the key short-term support level.
In other news, the Reserve Bank of Australia released their meeting minutes, but didn’t say much new, so AUD/USD remains pretty much unchanged as we head into the European open. The bank said that the Australian Dollar needs to fall further, especially given the lower commodity prices, and that accommodative monetary policy will remain appropriate given the domestic and international situation.
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