14 Jul 2015
EUR/JPY: too much to consider! Neutral/bullish bias?
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.72 with a high of 136.50 and a low of 135.27.
EUR/JPY is holding in between the majors and is more or less steady around the middle of today's range between aforementioned highs and lows and where the cross was balanced for the majority of yesterday's business.
EUR/JPY is subject to the headlines over Greece and the US economy which impacts USD/JPY and EUR/USD flows. The Yen is a safe haven but vulnerable to the downside on up-shots in the US economy and stock markets. However, on good news in respect of Greece and positive progress towards a third bailout and closure on the subject, leaves the downside exposed in the Yen and to some extent some upside in EUR/USD which would ultimately support a more bullish foundation for the cross. That said, judging by the price action in EUR/USD, markets may focus attention back to Central Bank divergences and that could limit much of any the relief that the euro may garner on any positive closure in the Greek debacle.
However, we are still someway out of the woods in respect of Greece with there being a number of variables and obstacles and complex decision making to be made by European leaders in respect of a bridging loan to fill the time between now and, say, four weeks of negotiations until a bailout package can be put together with all parties in agreeance. The focus for now is the Greek parliamentary decision tomorrow and subsequent action throughout other nations and parliaments. It may still be that Athens do not pass the reforms that Tsipras has agreed to in principal.
EUR/JPY upside exposed technically
Technically, the cross has shown some bullish action of late that indicates that there is further upside to go given the strong recovery on the Greek deal optimism that occurred at the start of this week with the cross rebounding from the bearish opening gap in Asia to 137.80, which was backed by last week's closing bids from the rally that commenced down at 133.30 up to 137.30.
Bears on the other hand might be betting against a direct form of progress in respect of Greece's bailout package and reform changes which leaves the cross vulnerable to subsequent uncertainty and negative headlines. This all exposes 133.72/80 and 133.27 on the technical map of the last few Asian session's bearish gaps on the opens and subsequent continuation of bearish flows in the euro to recent lows in the cross.
EUR/JPY is holding in between the majors and is more or less steady around the middle of today's range between aforementioned highs and lows and where the cross was balanced for the majority of yesterday's business.
EUR/JPY is subject to the headlines over Greece and the US economy which impacts USD/JPY and EUR/USD flows. The Yen is a safe haven but vulnerable to the downside on up-shots in the US economy and stock markets. However, on good news in respect of Greece and positive progress towards a third bailout and closure on the subject, leaves the downside exposed in the Yen and to some extent some upside in EUR/USD which would ultimately support a more bullish foundation for the cross. That said, judging by the price action in EUR/USD, markets may focus attention back to Central Bank divergences and that could limit much of any the relief that the euro may garner on any positive closure in the Greek debacle.
However, we are still someway out of the woods in respect of Greece with there being a number of variables and obstacles and complex decision making to be made by European leaders in respect of a bridging loan to fill the time between now and, say, four weeks of negotiations until a bailout package can be put together with all parties in agreeance. The focus for now is the Greek parliamentary decision tomorrow and subsequent action throughout other nations and parliaments. It may still be that Athens do not pass the reforms that Tsipras has agreed to in principal.
EUR/JPY upside exposed technically
Technically, the cross has shown some bullish action of late that indicates that there is further upside to go given the strong recovery on the Greek deal optimism that occurred at the start of this week with the cross rebounding from the bearish opening gap in Asia to 137.80, which was backed by last week's closing bids from the rally that commenced down at 133.30 up to 137.30.
Bears on the other hand might be betting against a direct form of progress in respect of Greece's bailout package and reform changes which leaves the cross vulnerable to subsequent uncertainty and negative headlines. This all exposes 133.72/80 and 133.27 on the technical map of the last few Asian session's bearish gaps on the opens and subsequent continuation of bearish flows in the euro to recent lows in the cross.