FXStreet (Mumbai) – The offered tone in EUR/JPY decreased in the European morning, as the European currency took a breather from its downslide and recovered more than half its slide against its major peers following an unexpected resignation from the Greek FinMin Varoufakis despite Greeks NO vote victory at the Greek referendum.
EUR/JPY rises from 134.57
Currently, the EUR/JPY pair trades -0.65% lower at 135.55, extending recovery from a drop below 134 handle witnessed in the overnight trades. The cross in EUR/JPY keeps losses, although maintains a gradual recovery mode as the shared currency seems to be recovering from biggest intraday losses after risk-off sentiment emerged across markets in reaction to the Greek referendum and a clear “No” to austerity measures.
While surprising announcement by Greece Finance Minister Varoufakis of stepping down slightly boosted the sentiment around the euro as Euro group ministers did not prefer him at the Euro group meetings.
However, a retreat in yen from six week highs versus the greenback also offered some support to the EUR/JPY cross, bringing it back above 135 barrier.
EUR/JPY Technical Levels
To the upside, the next resistance is located at 137 levels and above which it could extend gains 137.79 (June 30 High) levels. To the downside immediate support might be located at 134.57 (Today’s Low) below that at 133.90 (July 5 Low) levels.
(Market News Provided by FXstreet)