FXStreet (Guatemala) – EUR/JPY is currently trading at 135.62 with a high of 136.07 and a low of 133.86.
EUR/JPY has slowed down as with the euro sticking to the 1.10 handle as the dust settles in the aftermath of the Greek referendum.
EUR/JPY fundamentals and Greek referendum aftermath
The euro is supported on the basis that EU leaders and IMF’s Largarde, are seeking to try and keep Greece in the Eurozone and avoid a Grexit while the majority of the public voted No to Greece’s creditor’s conditions, perhaps with some flexibility from both sides, a deal can be arranged. But downside is exposed in the cross on risk off play around the possibility of a Grexit.
Today, Yanis Varoufakis stepped aside to allow for a new finance minister, Euclid Tsaklotos, to take his position at the negotiating table. However, EU’s Dombrovskis has said that the No vote has only increased the gap between athens and their creditors. Meanwhile, Merkel and Tsipras have reached an agreement where Greece can present their new proposals to her tomorrow and nevertheless, there is a summit to take place between the creditors tomorrow as well. Banks in Greece may remain closed for a further day or two while the ECB stated that Greece should be able to manage until Wednesday without additional funding.
EUR/JPY technically
The bullish target zone for EUR/JPY of 140.70/141.06 remains some way off while euro markets remains in tight ranges with EUR/USD osculating in and around the 1.10 handle after Asia’s opening bearish gap. The downside remains compelling at this stage though. 133.76, being 28 June lows are now back in to focus within April’s uptrend from 129.09.
(Market News Provided by FXstreet)