FXStreet (Edinburgh) – According to Jane Foley, Senior Currency Strategist at Rabobank, the bearish tone in the cross could drag it to the area of 132.00 in the medium term.
Key Quotes
“Historically the JPY, along with the CHF, has been a favoured safe haven”.
“During the month of June EUR/JPY adopted a downside bias, though it ended the month off its recent low”.
“Both the BoJ and the ECB are maintaining huge asset purchase programmes”.
“However, comments from BoJ Governor Kuroda in early June that the Japanese effective exchange rate was already very low lent the JPY some support”.
“Although these remarks were later downplayed, the rise in tensions stemming from Greece increased the pressure on EUR/JPY towards the end of the month”.
“While news from Greece is likely to increase volatility in the coming months, we expect the downside bias to remain in place and we forecast a move towards the EUR/JPY 132- area medium-term”.
(Market News Provided by FXstreet)