8 Jul 2015
EUR/JPY struggles above 134
FXStreet (Mumbai) - EUR/JPY remains relentlessly sold-off in the European session, although bouncing-off a brief dip below 134 handle. The weakness witnessed in the cross today was largely driven by broad yen strength backed rising demand for safety assets as traders await fresh news on Greece front ahead of Fed minutes due later today.
EUR/JPY recovers from 133.77
Currently, the EUR/JPY pair trades -0.56% lower at 134.19, retracing from session lows posted at 133.77. The offered tone in the cross reduced as strengthening EUR/USD continues to cushion the downside.
However, rising yen versus the US dollar to fresh six week highs is mainly responsible for the sell-off in EUR/JPY. The Japanese yen was supported by the biggest domestic current account surplus since 2007, while developments in China and Greece drove the level of risk-off sentiment across the board helping the yen.
While markets await fresh incentives from the Euro group meeting on Greek debt negotiations with the EU leaders making strong statements on the Greek government and also on the ELA lifelines.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 134.89 (Today’s High) levels and above which it could extend gains 135 levels. To the downside immediate support might be located at 133.77 (Today’s Low) below that at 133.51 (July 7 Low) levels.
EUR/JPY recovers from 133.77
Currently, the EUR/JPY pair trades -0.56% lower at 134.19, retracing from session lows posted at 133.77. The offered tone in the cross reduced as strengthening EUR/USD continues to cushion the downside.
However, rising yen versus the US dollar to fresh six week highs is mainly responsible for the sell-off in EUR/JPY. The Japanese yen was supported by the biggest domestic current account surplus since 2007, while developments in China and Greece drove the level of risk-off sentiment across the board helping the yen.
While markets await fresh incentives from the Euro group meeting on Greek debt negotiations with the EU leaders making strong statements on the Greek government and also on the ELA lifelines.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 134.89 (Today’s High) levels and above which it could extend gains 135 levels. To the downside immediate support might be located at 133.77 (Today’s Low) below that at 133.51 (July 7 Low) levels.