FXStreet (Guatemala) – EUR/JPY is currently trading at 134.14 with a high of 135.03 and a low of 133.94.
EUR/JPY has been hit by the bears while 135.00has been protected an 134 bulls are ducking for cover.
EUR/JPY is in risk-off mode, with the Yen attracting flows down 0.34% on the day so far in Asia. The concerns in the markets come as China suspends trading across 50% of 2754 listed firms on the China Shanghai composite Index that opened down 6.9% at 3467.40, around the Greece debacle and subsequent uncertainties and continued speculation of what a Grexit might mean for the Global financial markets.
Analysts at Rabobank explained, “The rest of Europe, for their part, are also moving further away from Greece following their own electorates and have said in no uncertain terms that we get a deal by Sunday or Grexit,” adding, “And that deal is apparently now going to be even tougher than the one which was previously on the negotiating table, with tax increases, spending cuts, and no debt relief (despite the leaked IMF report saying Greece’s debt-load is unsustainable) for an economy already in depression. Yet Grexit looks potentially an even worse fate both for Greece, and potentially for the Eurozone itself on several levels. So, five days – at most – and counting.”
EUR/JPY technically bearish
Karen Jones, chief analyst at Commerzbank, explained that key short term support is 133.10/57 May low and 50% retracement. “Failure here will introduce scope to the 131.80/61.8% retracement then 129.28 the 78.6% retracement.”
(Market News Provided by FXstreet)