FXStreet (Córdoba) – EUR/JPY dropped during the European session to 137.65, reaching the lowest level since June 2 but then rebounded quickly, rising back above 138.00.
The recovery from the lows was capped by 138.70 and during the last hours it has remained steady hovering around 138.40/50, down 40 pips for the day so far, about to post the second lowest close for the current month.
The euro remained mostly steady in the market despite the lack of agreement between Greece and its creditors. The yen is modestly higher versus the US dollar and mixed across the board as US stocks in Wall Street post marginal gains and despite a decline in US government bonds.
EUR/JPY outlook
Since early June the pair was moving sideways between 138.00 and 141.00, consolidating after rising during April, May and June. The pair now traded momentarily below 138.00 where a key support level is located. The mentioned area remain sunder pressure and a break lower could open the doors for a bearish correction.
(Market News Provided by FXstreet)