13 Jul 2015
EUR/JPY and Grexit fears; demand back after bearish opening gap
FXStreet (Guatemala) - EUR/JPY is currently trading 136.26 with an opening high of 136.74, a low of 135.56 on opening bearish gap and recent high of 136.68 on a minor recovery of the opening bearish gap's lows.
EUR/JPY is volatile in early Asia, but steadying now ahead of the Tokyo open with much of the work from the bulls now exhausted else where with USD/JPY's rebound closing the gap while EUR/USD struggles to shake of Grexit fears.
EUR/JPY price action
EUR/JPY had opened with a bearish gap to 135.56 the low but has since found support and demand back on to the 136 handle and extended the minor recovery to aforementioned and recently scored highs.
EUR/JPY fundamentals and mounting fears of Grexit
Besides Greece, this week comes with a press conference from the BoJ while tonight we await industrial production for Japan. However, the spotlight remains with Greece and risk-off markets that could favour the Yen regardless of the domestics in Japan.
Greek talks are not moving in the direction of a Greek deal this weekend while the EU summit has been canceled as finance ministers work through the deadline hours seeking to find a solution to keep Greece in the euro and eurozone. Essentially, the EZ needs Greece to commence with new reforms, as soon as this week in order for funds to be released resolve to Greek bankruptcy while negotiations can then start on a third bailout programme. However, the Greek parliament have been given a deadline of 15th July to approve the legislation and these reforms have since stirred an angry response from some Greek officials, who signalled that there were elements of the European demands they could not accept. So, the saga continues but alarmingly a Grexit could be back on the cards which supports the Yen across the board.
EUR/JPY technically bearish
Despite the minor recovery, attention has reverted to previous supports We have the 133.57/50% retracement that has now been exposed on the fundamentals. This level, together with the 133.10 May low guards 131.80/61.8% retracement and then 129.28, the 78.6% retracement.
EUR/JPY is volatile in early Asia, but steadying now ahead of the Tokyo open with much of the work from the bulls now exhausted else where with USD/JPY's rebound closing the gap while EUR/USD struggles to shake of Grexit fears.
EUR/JPY price action
EUR/JPY had opened with a bearish gap to 135.56 the low but has since found support and demand back on to the 136 handle and extended the minor recovery to aforementioned and recently scored highs.
EUR/JPY fundamentals and mounting fears of Grexit
Besides Greece, this week comes with a press conference from the BoJ while tonight we await industrial production for Japan. However, the spotlight remains with Greece and risk-off markets that could favour the Yen regardless of the domestics in Japan.
Greek talks are not moving in the direction of a Greek deal this weekend while the EU summit has been canceled as finance ministers work through the deadline hours seeking to find a solution to keep Greece in the euro and eurozone. Essentially, the EZ needs Greece to commence with new reforms, as soon as this week in order for funds to be released resolve to Greek bankruptcy while negotiations can then start on a third bailout programme. However, the Greek parliament have been given a deadline of 15th July to approve the legislation and these reforms have since stirred an angry response from some Greek officials, who signalled that there were elements of the European demands they could not accept. So, the saga continues but alarmingly a Grexit could be back on the cards which supports the Yen across the board.
EUR/JPY technically bearish
Despite the minor recovery, attention has reverted to previous supports We have the 133.57/50% retracement that has now been exposed on the fundamentals. This level, together with the 133.10 May low guards 131.80/61.8% retracement and then 129.28, the 78.6% retracement.