FXStreet (Guatemala) – EUR/JPY is currently trading at 139.13 with a high of 140.19 and a low of 138.92.
EUR/JPY has been a slide down to test the 139 handle as the Yen remains robust. The BoJ meeting last night has essentially given the green light for the Yen to strengthen as much depends on external factors while inflation will play a key roll in the price going forward.
Derek Halpenny, analyst at the Bank of Tokyo-Mitsubishi UFJ, Ltd explained, “On his comment that the REER wasn’t likely to weaken further, Kuroda repeated his clarification that he didn’t comment on a level or give a view about the nominal bilateral exchange rates, adding that the REER is a “complicated” concept. One angle Kuroda is getting at here is that based on his optimistic view on inflation, he’s suggesting that inflation itself will help lift the REER. Secondly, USD/JPY can easily move higher but as long as the dollar moves by a larger amount versus other currencies then the trade-weighted yen would strengthen. That in fact is exactly what we are forecasting.”
Greece deadlines
Meanwhile, analysts at Rabobank commented on Greece and said, “IMF Managing Director Lagarde this week made clear that a payment is due forGreece on June 30 and that “there is no grace period”. The Bank of Greece has warned its own government to sign a deal with its creditors quickly to prevent an “uncontrollable crisis” which could jeopardize the country’s position in the EU and daily withdrawals from Greek banks have surged. Yet neither Greece’s far left government nor the country’s creditors appear willing to blink first. As a consequence, politicians have become less shy about admitting that preparations for a potential Grexit are being made.
EUR/JPY technically remains bullish
Technically, the cross has turned bearish on this sentiment and 139 is under threat ahead of 138.80 support.
(Market News Provided by FXstreet)