FXStreet (Guatemala) – EUR/JPY is currently trading at 139.25 with a high of 139.35 and low of 138.06.
EUR/JPY has run in to offers and has collected up a bearish theme with a better bid Yen while the ECB continues to be a weight on the euro with their asset purchasing programme. Greece is also an ongoing seesaw of reasons to get long and short of the euro that is starting to move in to the balance of the bears more so as each week and failure of progress goes by. The Japanese officials have effectively called a top in USD/JPY at 125 and this will be a theme in this week’s BoJ event to monitor.
EUR/JPY in the hands of the bears
EUR/JPY is technically in a very bearish situation. For example, Kare Jones, chief analyst at Commerxbank explained that EUR/JPY failed to overcome the 4th June high at 141.06 and this coupled with divergence of the RSI , a 13 count on the daily chart and the fact that the market is stalling just ahead of the top of its channel, suggests that we should see further weakness. “We should see a slide back to the base of the channel at 136.39. Above 141.06 will target the top of the channel at 142.58 and then 144.71/145.68, the 78.6% retracement of the move down from December 2014 and the 2013 high.”
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