13 Jul 2015
EUR/JPY smashed after fears on Time-out Grexit proposal
FXStreet (Guatemala) - EUR/JPY is currently trading on the open in Tokyo at 136.10, with a high of 136.17 and low of for the opening 30 mins stick at 135.56.
EUR/JPY is open with a bearish gap as a result of the weekend's Greek talks and the possibility of a Time-out Grexit after there being no Greek deal that has been arranged.
EUR/JPY price action, bearish Gexit gap
EUR/JPY has been decisively bid since the 9th June's recovery that extended right in to last week's close from 133.30 until 137.28 and consolidation around there. EUR/JPY has opened with a bearish gap to 135.56 the low but has since found support and demand back on to the 136 handle.
EUR/JPY fundamentals and fears of Grexit
EUR/JPY will be subject to volatility around the outcomes of this weekend's Greek talks and lack of traction where Greek proposals were insufficient. The EU summit was cancelled as Greek talks still remain difficult and the two sides are still very far apart. There are now ideas that a temporary Grexit, a "Time-out", will be ordered, albeit awaiting official endorsements from all finance ministers who are not all in agreement so far. However, unless Greece can put aside 50b EUR in trust fund to pay off debts this could be an outcome. Greek banks have just around 750m euros worth of capital to last until Monday night. Essentially, the EZ needs Greece to commence with new reforms as soon as this week in order for funds to be released to resolve a Greek bankruptcy while negotiations can then start on a third bailout programme. However, the Greek parliament have been given a deadline of 15th July to approve the legislation.
EUR/JPY technically bearish
On the bearish gap, attention has reverted to previous supports. We have the 133.57/50% retracement that has now been exposed on the fundamentals. This level, together with the 133.10 May low guards 131.80/61.8% retracement and then 129.28, the 78.6% retracement.
EUR/JPY is open with a bearish gap as a result of the weekend's Greek talks and the possibility of a Time-out Grexit after there being no Greek deal that has been arranged.
EUR/JPY price action, bearish Gexit gap
EUR/JPY has been decisively bid since the 9th June's recovery that extended right in to last week's close from 133.30 until 137.28 and consolidation around there. EUR/JPY has opened with a bearish gap to 135.56 the low but has since found support and demand back on to the 136 handle.
EUR/JPY fundamentals and fears of Grexit
EUR/JPY will be subject to volatility around the outcomes of this weekend's Greek talks and lack of traction where Greek proposals were insufficient. The EU summit was cancelled as Greek talks still remain difficult and the two sides are still very far apart. There are now ideas that a temporary Grexit, a "Time-out", will be ordered, albeit awaiting official endorsements from all finance ministers who are not all in agreement so far. However, unless Greece can put aside 50b EUR in trust fund to pay off debts this could be an outcome. Greek banks have just around 750m euros worth of capital to last until Monday night. Essentially, the EZ needs Greece to commence with new reforms as soon as this week in order for funds to be released to resolve a Greek bankruptcy while negotiations can then start on a third bailout programme. However, the Greek parliament have been given a deadline of 15th July to approve the legislation.
EUR/JPY technically bearish
On the bearish gap, attention has reverted to previous supports. We have the 133.57/50% retracement that has now been exposed on the fundamentals. This level, together with the 133.10 May low guards 131.80/61.8% retracement and then 129.28, the 78.6% retracement.