Yen Extends Rise Amid Greek Woes

The Japanese yen continued to be stronger against the other major currencies in the Asian session on Tuesday, as the ongoing worries about the looming threat of a Greek debt default and the possibility of the debt-laden country exiting the eurozone have increased the demand for the safe-haven currency.

Fears about the deepening Greek crisis have roiled global markets.

Greece and its creditors have failed to reach an agreement on a deal to release bailout funds in time for Greece to meet a 1.6 billion euro debt payment to the International Monetary Fund due later this day.

Greek Prime Minister Alexis Tsipras reportedly said on Monday that his country will not make the payment to the IMF by the Tuesday deadline unless Greece strikes a deal with its creditors.

The safe haven currency's gain came as the latest round of talks between Greece and its creditors broke down over the weekend. Tsipras subsequently called for a referendum on the bailout proposals by creditors on July 5.

Meanwhile, the Japanese stock market rebounded, from a one-week closing low in the previous session amid concerns about the impact of the Greek crisis on the global economy. The benchmark Nikkei 225 Index is currently up 34.56 points or 0.17 percent at 20,144.

In other economic news, a preliminary report from the Ministry of Health, Labor and Welfare showed that a the total labor cash earnings in Japan rose 0.6 percent year-over-year to JPY 268,389 in May. The labor cash earnings growth for April was revised to 0.7 percent from a 0.9 percent increase.

Monday, the yen rose 1.06 percent against the euro, 1.13 percent against the pound, 1.03 percent against the U.S. dollar and 0.05 percent against the Swiss franc.

In the Asian trading today, the yen rose to nearly a 1-1/2-month high of 98.38 against the Canadian dollar, from yesterday's closing value of 98.77. The yen may test resistance near the 97.00 region.

The yen advanced to 136.66 against the euro, 192.16 against the pound and 131.73 against the Swiss franc, from yesterday's closing quotes of 137.65, 192.73 and 132.43, respectively. If the yen extends its uptrend, it is likely to find resistance around 131.00 against the euro, 188.00 against the pound and 128.00 against the franc.

Against the U.S., the Australia and the New Zealand dollars, the yen edged up to 122.19, 93.66 and 83.10 from yesterday's closing quotes of 122.52, 94.08 and 83.92, respectively. On the upside, 120.00 against the greenback, 91.50 against the aussie and 82.00 against the kiwi are seen as the next resistance level for the yen.

Looking ahead, German retail sales for may is slated for release at 2:00 am ET.

In the European session, Swiss KOF leading indicator for June, German unemployment rate for June, third estimate of U.K first quarter GDP, U.K. index of services for April and flash Eurozone CPI for June and unemployment rate for May are also set to be announced.

At 4:40 am ET, Reserve Bank of Australia Governor Glenn Stevens is expected to speak at an event hosted by the Official Monetary and Financial Institutions Forum in London.

Around the same time, Bank of England's Paul Fisher will deliver a speech at the Financial Times Future of Insurance event, in London

In the New York session, Canada GDP for April, U.S. S&P/Case-Shiller home price index for April, U.S. Chicago PMI and U.S. consumer confidence, both for June, are set to be published

At 7:00 am ET, Bank of England Chief Economist Andy Haldane is expected to speak at the Open University in London.

An hour later, European Central Bank Governing Council member Ewald Nowotny will give a keynote speech at "Raiffeisen Bank International-Summer Talk" in Vienna.