10 Jul 2015
EUR/JPY: Capped below 135 after Greek proposal recovery rally
FXStreet (Guatemala) - EUR/JPY is currently trading at 134.61 with a high of 134.96 and a low of 133.80.
EUR/JPY has been a top performer on the bid this Asian session on the back of the new Greek proposals that were submitted earlier for review over the next few days.
EUR/JPY price action and technical analyses
EUR/JPY has rallied from 133.50, a moved that commenced in the late hours of US trade and topped out at aforementioned highs. to the upside, 135 needs to give, targeting 135.50. To the downside, we now have the 133.10 May low that comes as a potential break down point to 131.80/61.8% retracement and then on to 129.28 being the 78.6% retracement.
EUR/JPY fundamentals
The Greek proposals have been submitted to both Brussels and to the Greek Parliament. The Greek parliament will vote on them on tonight in Europe while we now await Eurogroup finance ministers and the Eurozone finance ministers meeting up on the weekend ahead of EU leaders' summit on Sunday. EUR/JPY has already displayed its vulnerability to the headlines in either direction. For the Yen and Japan, risks remain in the balance of the BoJ. The BoJ are dependent on their inflation target of 2% and are adamant that their policy will continue until their target is reached, which weighs on the Yen in respect to their QQE programme. Meanwhile, China could be a potential support to the Yen on economic concerns.
EUR/JPY has been a top performer on the bid this Asian session on the back of the new Greek proposals that were submitted earlier for review over the next few days.
EUR/JPY price action and technical analyses
EUR/JPY has rallied from 133.50, a moved that commenced in the late hours of US trade and topped out at aforementioned highs. to the upside, 135 needs to give, targeting 135.50. To the downside, we now have the 133.10 May low that comes as a potential break down point to 131.80/61.8% retracement and then on to 129.28 being the 78.6% retracement.
EUR/JPY fundamentals
The Greek proposals have been submitted to both Brussels and to the Greek Parliament. The Greek parliament will vote on them on tonight in Europe while we now await Eurogroup finance ministers and the Eurozone finance ministers meeting up on the weekend ahead of EU leaders' summit on Sunday. EUR/JPY has already displayed its vulnerability to the headlines in either direction. For the Yen and Japan, risks remain in the balance of the BoJ. The BoJ are dependent on their inflation target of 2% and are adamant that their policy will continue until their target is reached, which weighs on the Yen in respect to their QQE programme. Meanwhile, China could be a potential support to the Yen on economic concerns.