FXStreet (Guatemala) – EUR/JPY is currently trading at 138.68 with a high of 139.17 and a low of 138.25.
EUR/JPY supply is coming in and capping the cross on its minor recovery. The Yen is firming up across the board, with USD/JPY bulls tiring on the 124 handle with a test to the downside and a possible break below the figure while EUR/USD bulls have met string resistance in 1.1220/30 territory. The losses of yesterday’s bullish hammer could come in to threat at 1.1134 which could see the cross fall way for another test of Junes support at the 138 level.
Meanwhile, there is little progress reported from the EZ in respect to Greece ahead of today’s Eurogroup meeting but sentiment remains positive that a deal will be struck this week. It was reported that the EZ finance ministers could approve a cash for reform deal this week on Monday and EU’s Junker has stated that he is confident the process will be finalised this week. Today, IMF’s Lagarde has said that she doesn’t want a Grexit but say’s Greek reform cannot be built on just tax hikes.
EUR/JPY bears eye key support
EUR/JPY’s support of June business is back in to focus, with 138.00 coming as key support and as Karen jones, chief analyst at Commerzbank explained, “A close below here will cause the chart picture to deteriorate.” The top of the channel and through 141 would be very bullish and be an extension of the broader bullish trend.
(Market News Provided by FXstreet)