10 Jul 2015
USD/JPY: Spike comes after Greek proposals submission
FXStreet (Guatemala) - USD/JPY is currently trading at 121.70 with a high of 120.81 and a low of 121.45.
USD/JPY has spiked higher on the back of the latest headlines of the Greek proposal that has been submitted.
USD/JPY price action on Greek proposal
USD/JPY was falling through the 122 handle on mid week trade where a low was reached at 120.38. From here, the market has been in recovery and today the price has popped up from 121.20 to aforementioned highs with EUR/JPY taking the lead on the Greek proposal news.
USD/JPY fundamentals
The Greek government have sent over the new Greek proposals to Brussels and also to the Greek Parliament, which is due to vote on them on tonight in Europe. So now we await Eurogroup finance ministers and the Eurozone finance ministers meeting up on the weekend ahead of EU leaders' summit on Sunday. The yen is likely to be a volatile currency throughout the next number of sessions depending on the outcome of this weekend.
In Asia, The PBoC is in focus in respect to the faltering economy in China that is another uncertainty and potential time bomb to drive investors to safety, an element supporting the Yen's outlook. However, the BoJ are dependent on their inflation target of2% and are adamant that their policy will continue until their target is reached, which weighs on the Yen in respect to their QQE programme.
USD/JPY technically
The current recovery in USD/JPY takes us back away from the risk of the the 5-month uptrend at 120.26, where we starting to focus attentions to on the recent downtrend. Below this level, on further disappointments from the Greek debacle that could be a catalyst to penetrate lower again, the sideways and long term cannel from Feb's rally targeting 122 that was met with supply and forced into a 118.50/120.80 range would act as a tough area of support. the upside brings back 123.00 in to the picture.
USD/JPY has spiked higher on the back of the latest headlines of the Greek proposal that has been submitted.
USD/JPY price action on Greek proposal
USD/JPY was falling through the 122 handle on mid week trade where a low was reached at 120.38. From here, the market has been in recovery and today the price has popped up from 121.20 to aforementioned highs with EUR/JPY taking the lead on the Greek proposal news.
USD/JPY fundamentals
The Greek government have sent over the new Greek proposals to Brussels and also to the Greek Parliament, which is due to vote on them on tonight in Europe. So now we await Eurogroup finance ministers and the Eurozone finance ministers meeting up on the weekend ahead of EU leaders' summit on Sunday. The yen is likely to be a volatile currency throughout the next number of sessions depending on the outcome of this weekend.
In Asia, The PBoC is in focus in respect to the faltering economy in China that is another uncertainty and potential time bomb to drive investors to safety, an element supporting the Yen's outlook. However, the BoJ are dependent on their inflation target of2% and are adamant that their policy will continue until their target is reached, which weighs on the Yen in respect to their QQE programme.
USD/JPY technically
The current recovery in USD/JPY takes us back away from the risk of the the 5-month uptrend at 120.26, where we starting to focus attentions to on the recent downtrend. Below this level, on further disappointments from the Greek debacle that could be a catalyst to penetrate lower again, the sideways and long term cannel from Feb's rally targeting 122 that was met with supply and forced into a 118.50/120.80 range would act as a tough area of support. the upside brings back 123.00 in to the picture.