19 Feb 2015
EUR/JPY falls after Germany rejects Greece extension request
FXStreet (Mumbai) - The EUR/JPY pair hit a low of 134.94 after the German government official said his country rejects Greece’s proposal to extend the bailout program. The shared currency also weakened due to the dovish European Central Bank minutes released today.
EUR/JPY: falls below 50% Fib level
The pair declined from the 23.6% Fib retracement of 133.93-136.21 located at 135.67 to hit session lows below the 50% retracement level located at 135.07. The pair hit a low of 134.94 on reports that German government said Greece's request for a bailout extension is not a "substantial proposal."
Meanwhile, the ECB minutes showed "large number" of council members are in favor of buying government bonds. Policymakers also saw a deterioration in the price in price-stability outlook. The dovish minutes further pressurized the shared currency. Meanwhile, the Japanese Yen stands to gain as a safe haven asset amid renewed Greece-led uncertainty.
EUR/JPY Technical Levels
The pair has recovered slightly to trade at 135.26. The immediate support is seen at the daily low of 134.94, under which losses could be extended to 134.56 levels. On the flip side, a break above 135.34 could see the pair re-test 135.67 levels.
EUR/JPY: falls below 50% Fib level
The pair declined from the 23.6% Fib retracement of 133.93-136.21 located at 135.67 to hit session lows below the 50% retracement level located at 135.07. The pair hit a low of 134.94 on reports that German government said Greece's request for a bailout extension is not a "substantial proposal."
Meanwhile, the ECB minutes showed "large number" of council members are in favor of buying government bonds. Policymakers also saw a deterioration in the price in price-stability outlook. The dovish minutes further pressurized the shared currency. Meanwhile, the Japanese Yen stands to gain as a safe haven asset amid renewed Greece-led uncertainty.
EUR/JPY Technical Levels
The pair has recovered slightly to trade at 135.26. The immediate support is seen at the daily low of 134.94, under which losses could be extended to 134.56 levels. On the flip side, a break above 135.34 could see the pair re-test 135.67 levels.