10 Jul 2015
EUR/JPY: Rally capped ahead of Greek and EU weekend
FXStreet (Guatemala) - EUR/JPY is currently trading at 136.76 with a high of 137.29 and a low of 133.80.
EUR/JPY has continued on the bid since yesterday's submittal of the Greek proposals to the Greek parliament and EU leaders. supply is meeting the rally currently as we await the outcomes of this weekend to see if negotiations can in deed start again between Greeks creditors and Athens.
EUR/JPY price action and technical analyses
EUR/JPY rallied from 133.50 and has gone on to reach a high of 137.29. Supply took the cross back to 136.68, gathering demand that has been probing the aforementioned highs until new lows of 136.63 where price is attempting to hold at time of writing. To the downside, 136.00, 134.40, 133.80 guard 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
For the Yen and Japan, 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.
This weekend is key for the cross to see whether the proposals of Greek reforms can be accepted to continue towards securing a deal or not. Analysts at TD securities explained that the weekend will continue to bring updates here, but they think recent comments support their expectation that a deal still remains marginally more likely than a Grexit.
"A deal this weekend means only that there is “sufficient basis to start formal negotiations.” It does not imply that a finalized deal will be done by Sunday night."
EUR/JPY has continued on the bid since yesterday's submittal of the Greek proposals to the Greek parliament and EU leaders. supply is meeting the rally currently as we await the outcomes of this weekend to see if negotiations can in deed start again between Greeks creditors and Athens.
EUR/JPY price action and technical analyses
EUR/JPY rallied from 133.50 and has gone on to reach a high of 137.29. Supply took the cross back to 136.68, gathering demand that has been probing the aforementioned highs until new lows of 136.63 where price is attempting to hold at time of writing. To the downside, 136.00, 134.40, 133.80 guard 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
For the Yen and Japan, 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.
This weekend is key for the cross to see whether the proposals of Greek reforms can be accepted to continue towards securing a deal or not. Analysts at TD securities explained that the weekend will continue to bring updates here, but they think recent comments support their expectation that a deal still remains marginally more likely than a Grexit.
"A deal this weekend means only that there is “sufficient basis to start formal negotiations.” It does not imply that a finalized deal will be done by Sunday night."