EURJPY Euro vs Japanese Yen

The Japanese yen weakened against other major currencies in the Asian session on Monday, as investor sentiment reacted positively to the resolution of the U.S. debt ceiling crisis after it was signed into law by U.S. President Joe Biden. They also reacted to solid U.S. employment data and easing fears of recession.

In economic news, the services sector in Japan continued to expand in May and at a faster pace, the latest survey from Jibun Bank showed on Monday with a services PMI of 55.9. That's up from 55.4 in April, and it moves further above the boom-or-bust line of 50 that separates expansion from contraction. The survey also showed that the composite index grew from 52.9 in April to 54.3 in May.

Crude oil prices rallied after Saudi Arabia pledged about production cuts of another 1 million barrels per day from July. West Texas Intermediate Crude oil futures for July ended higher by $1.64 or 2.3 percent at $71.74 a barrel. Brent crude futures was at $78.42 a barrel, up $2.29, or 3 percent, after hitting a session-high of $78.73 a barrel earlier.

In the Asian trading today, the safe-haven yen fell to a 6-day low of 150.05 against the euro from Friday's closing at 149.82. The yen may test support near the 154.00 region.

Against the U.S. dollar and the Swiss franc, the yen dropped to 5-day lows of 140.26 and 154.15 from last week's closing quotes of 139.91 and 153.94, respectively. If the yen extends its downtrend, it may find support around 142.00 against the greenback and 156.00 against the franc.

The yen edged down to 174.37 against the pound, from Friday's closing of 174.12. On the downside, 176.00 is seen as the next support level for the yen.

Against the Australia and the Canadian dollars, the yen slipped to more than a 4-month low of 92.61 and more than a 6-month low of 104.45 from Friday's closing quotes of 92.39 and 104.16, respectively. The yen may test support near 94 against the aussie and 106 against the loonie.

Moving away from Friday's closing value of 84.74 against the NZ dollar, the yen slipped to a 6-day low of 84.96. The next possible downside target level for the yen is seen around the 88.00 region.

Looking ahead, Switzerland inflation data for May is due to be released at 2:30 am ET, in the pre-European session.

In the European session, PMI data for May from different European economies and U.K and Eurozone PPI for April are slated for release.

In the New York session, U.S. PMI data for May and factory orders for April are set to be released.

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