FXStreet (Guatemala) – EUR/JPY is currently trading at 137.10 with a high of 137.78 and a low of 133.04.
EUR/JPY has been unable to break the bearish forces and 137 is under pressure as a result. There was a bid that was extended from the 135 handle up to 138.00, 20 pips shy of the gap but this was short lived as markets remain in risk-off mode.
Yen supported on Greece
The Yen’s strength comes in play here on the safe haven status that it holds in times of uncertainty and Greece is a very uncertain bag still, despite the confirmations that the repayment to the IMF will not be met later tonight and despite Athens parliament calling for a referendum this Sunday, a week is along time away in politics and many things could happen between now and then, certainly given that EU leaders are urging Greece to come back to the table and negotiate while fears of a Grexit and subsequent ramifications could be catastrophic for the EZ and global financial markets.
EUR/JPY volatility and key levels
The Yen should remain in favour of investors while the uncertainty plays out and technically this exposes the 133.10/57 May lows and the 50% retracement. Below there with convincing closes makes way for 131.80, being the 61.8% retracement. The upside reveals 138.20 and 140.00 ahead of strong resistance at 1.4070/141.06.
(Market News Provided by FXstreet)