5 Jul 2015
EUR/JPY collapses below 134.00 on Greek referendum
FXStreet (Bali) - EUR/JPY has collapsed almost 3 cents from last Friday's NY close a 136.60 to decline as low as 133.70 in interbank-trade before consolidating around the 134.00 handle.
Market prices in Greece uncertainty
The Greek drama, which may be approaching its final chapters before a possible 'Grexit' materializes, following the defiant 'No'vote (currently leading with 61% after more than 70% votes counted), has sent the Euro into a tailspin. While the Greek government remains confident that the rejection to the last bailout offer serves as a new tool to re-negotiate better bailout conditions, one cannot help to notice that patience among Eurozone's paymasters, that is Germany/ECB, is running low. The outcomes in the following days are unpredictable, and as such, the market is pricing in these 'unknowns' in EUR.
EUR/JPY technicals
The test of the June 29th low at 133.70 has found some buying interest, however, the persistence to visit the area implies that some unfinished business is building along the level for a potential break lower, which would then expose the next bear target at the 133.00 handle (also Monthly S1) as per late May lows. On the upside, given that Greece is now on uncharted territory, it is unlikely that much buying interest will be found, thus bounces should remain shallow.
Market prices in Greece uncertainty
The Greek drama, which may be approaching its final chapters before a possible 'Grexit' materializes, following the defiant 'No'vote (currently leading with 61% after more than 70% votes counted), has sent the Euro into a tailspin. While the Greek government remains confident that the rejection to the last bailout offer serves as a new tool to re-negotiate better bailout conditions, one cannot help to notice that patience among Eurozone's paymasters, that is Germany/ECB, is running low. The outcomes in the following days are unpredictable, and as such, the market is pricing in these 'unknowns' in EUR.
EUR/JPY technicals
The test of the June 29th low at 133.70 has found some buying interest, however, the persistence to visit the area implies that some unfinished business is building along the level for a potential break lower, which would then expose the next bear target at the 133.00 handle (also Monthly S1) as per late May lows. On the upside, given that Greece is now on uncharted territory, it is unlikely that much buying interest will be found, thus bounces should remain shallow.