EUR/JPY slightly bullish above 100-DMA; Greeks never ending bailout drama

Currently, EUR/JPY is trading at 120.12, up +0.35% or 40-pips on the day, having posted a daily high at 120.30 and low at 119.71.

How do you repay almost 23 billion euros when you couldn't handle previous bailouts? Apparently, you sit tight and extend your hand for 'another' bailout. That's exactly what Greece is about to do against all odds. The odds where no one can keep going with the never debt drama.

As reported on the wires, via Bloomberg, "Excessive taxation of companies and the middle class to fund an overly generous pension system and an unacceptably high threshold for tax-free income is also to blame for Greece’s continuing economic malaise, according to the IMF."

On the data front, tomorrow's economic docket, market participants focused on the next 'high impact' news release; Germany's Markit Manufacturing PMI expected at 56 or better from previous 56.4.

Euro exchange rate "too weak" for Germany: German FinMin Schaeuble

Historical data available for traders and investors indicates during the last 8-weeks that EUR/JPY cross had the best trading day at +0.94% (Jan.18) or 114-pips, and the worst at -1.05% (Feb.6) or (126)-pips. Furthermore, the US 10yr treasury yields fell on Friday from 2.46% to 2.41%, down -1.31% on the day or -0.0320, during last week's trading session it went as low as -1.82%.

Technical levels to watch

In terms of technical levels, upside barriers are aligned at 121.87 (50-DMA), then at 123.30 (high Jan.27) and above that at 124.08 (high Dec.15). While supports are aligned at 119.12 (100-DMA), later at 117.74 (200-DMA) and below that at 116.20 (low Nov.17). On the other hand, Stochastic Oscillator (5,3,3) seems truly committed to head south. Therefore, there is evidence to expect further Japanese yen gains in the near term.

On the long-term view, the currency cross continued its healthy and deeper pullback, as of writing, trading (250)-pips below 124.08 short-term top. To the downside, supports are aligned at 118.40 (short-term 61.8% Fib), then at 116.76 (short-term 50% Fib) and below that at 115.00 (short-term 38.2% Fib). On the flipside, upside barriers are aligned at 122.50 (Feb.), later at 123.70 (Jan.) and above that at 124.60 (May).

EUR/JPY analysis: persisting yen strength points to 118.40