10 Jul 2015
USD/JPY peaking ahead of Greek parliament ballot and EU summit
FXStreet (Guatemala) - USD/JPY is currently trading at 122.80 with a high of 122.88 and a low of 121.45.
USD/JPY has met supply on a decent performance on the day and longs have become exhausted, despite an upbeat speech from Yellen and signs that there will be rate hikes this year.
USD/JPY price action
USD/JPY has been better bid since yesterday's late submission of the new reforms that Greece are prepared to propose to the EU and their creditors. The rally was extended today from the 122 handle and has been relentless all the way through to the aforementioned highs.
USD/JPY fundamentals
So now we await Eurogroup finance ministers and the Eurozone finance ministers meeting up on the weekend ahead of EU leaders' summit on Sunday. Today was for Greece's parliament to vote on the new reforms and we are still waiting the outcome, with the ballot expected late on Friday night. There has been some opposition to the proposals given they are very similar to what the Greek referendum voted no against. "The proposals are not compatible with the Syriza program," Energy Minister Panagiotis Lafazanis, who belongs to the far-left faction, told Reuters. Asia opens on Sunday and it could be a busy day for the Yen on safe haven flows depending on the outcome.
Analysts at TD securities explained that the weekend will continue to bring updates here, but they think recent comments support their expectation that a deal still remains marginally more likely than a Grexit.
"A deal this weekend means only that there is “sufficient basis to start formal negotiations.” It does not imply that a finalized deal will be done by Sunday night."
USD/JPY technically on Greek risk-off
There is the 5-month uptrend at 120.26, where risk off markets could have eyes on. then, below this level, on further disappointments from the Greek debacle that could be a catalyst to penetrate lower again brings back the 118.50/120.80 range and this would be expected to hold. On the upside, on a positive outcome, 123.08 guards 123.20 until 123.80 to close 28th June's bearish gap.
USD/JPY has met supply on a decent performance on the day and longs have become exhausted, despite an upbeat speech from Yellen and signs that there will be rate hikes this year.
USD/JPY price action
USD/JPY has been better bid since yesterday's late submission of the new reforms that Greece are prepared to propose to the EU and their creditors. The rally was extended today from the 122 handle and has been relentless all the way through to the aforementioned highs.
USD/JPY fundamentals
So now we await Eurogroup finance ministers and the Eurozone finance ministers meeting up on the weekend ahead of EU leaders' summit on Sunday. Today was for Greece's parliament to vote on the new reforms and we are still waiting the outcome, with the ballot expected late on Friday night. There has been some opposition to the proposals given they are very similar to what the Greek referendum voted no against. "The proposals are not compatible with the Syriza program," Energy Minister Panagiotis Lafazanis, who belongs to the far-left faction, told Reuters. Asia opens on Sunday and it could be a busy day for the Yen on safe haven flows depending on the outcome.
Analysts at TD securities explained that the weekend will continue to bring updates here, but they think recent comments support their expectation that a deal still remains marginally more likely than a Grexit.
"A deal this weekend means only that there is “sufficient basis to start formal negotiations.” It does not imply that a finalized deal will be done by Sunday night."
USD/JPY technically on Greek risk-off
There is the 5-month uptrend at 120.26, where risk off markets could have eyes on. then, below this level, on further disappointments from the Greek debacle that could be a catalyst to penetrate lower again brings back the 118.50/120.80 range and this would be expected to hold. On the upside, on a positive outcome, 123.08 guards 123.20 until 123.80 to close 28th June's bearish gap.