EUR/JPY anxiously awaits Greece negotiation outcome

FXStreet (Mumbai) - The EUR/JPY pair is trading in the sideways manner as markets await the outcome of the negotiations between Greece and its international creditors.

Pair at risk of negative fallout

A negative fallout without an accord at the Eurogroup meeting later today could lead to a sharp fall in the EUR/JPY pair. The sentiment sensitive Japanese Yen could be a big beneficiary of the risk-off event in case of a negative fallout. Meanwhile, the shared currency is unlikely to benefit much even if the Trade surplus in December prints higher than the consensus estimate of EUR 20.0 billion.

Earlier today, the Japanese GDP data released earlier today failed to stimulate big moves in the EUR/JPY pair. The Japanese economy emerged from the recessions, however, the annualised 2.2% expansion in October-December was smaller than a 3.7% increase forecast in a Reuters poll. The markets are likely to remain solely focused on the Eurogroup meeting.

EUR/JPY Technical Levels

The pair currently trades at 135.41 levels. The immediate resistance is seen at 135.47 (5-DMA) and 136.00 levels. On the flip side, a break below 134.78 (23.6% retracement of 149.16-130.13), could push the pair down to 134.13 levels.

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