25 Jun 2015
EUR/JPY extends declines to 138.50 on Greece
FXStreet (Mumbai) - EUR/JPY extends its overnight decline in the early European trades, moving away from 139 handle, as the yen bulls took charge across the board as Greece concerns continue to support safe-haven appeal in the Japanese currency.
EUR/JPY drops from 138.85
Currently, the EUR/JPY pair trades -0.18% at fresh session lows of 138.49, retracing from 138.85 highs. The cross in EUR/JPY keeps losses heading into the European opening bells largely on a strengthening yen versus the US dollar as most traders flock to safety assets ahead of the Euro group meeting later today with Greek deal on the top of the agenda.
On the EUR-side, traders remain cautious to create fresh positions in EUR/USD keeping the pair around 1.12 handle as Wednesday’s Euro group meeting turned out to be a no show for Greece for the second time this week.
Karen Jones, Analyst at Commerzbank believes, “EUR/JPY has so far seen a minor bounce from the uptrend support, today at 138.27. Rallies are expected to remain shallow – the market has recently seen repeated failure at the 140.70/141.06 resistance – this has shifted the focus to underlying support and in particular to the 2 month uptrend and 200 day ma at 138.04/137.32.”
“A close below here will cause the chart picture to deteriorate. Failure here will trigger losses towards the 134.57 55 day ma. Very near term we would allow for a small rally from here but look for failure ahead of 140.70/141.06.“
EUR/JPY Technical Levels
To the upside, the next resistance is located at 138.85 (Today’s High) levels and above which it could extend gains 139.16 (June 24 High) levels. To the downside immediate support might be located at 138.22 (June 24 Low) below that at 138 (June 15 Low) levels.
EUR/JPY drops from 138.85
Currently, the EUR/JPY pair trades -0.18% at fresh session lows of 138.49, retracing from 138.85 highs. The cross in EUR/JPY keeps losses heading into the European opening bells largely on a strengthening yen versus the US dollar as most traders flock to safety assets ahead of the Euro group meeting later today with Greek deal on the top of the agenda.
On the EUR-side, traders remain cautious to create fresh positions in EUR/USD keeping the pair around 1.12 handle as Wednesday’s Euro group meeting turned out to be a no show for Greece for the second time this week.
Karen Jones, Analyst at Commerzbank believes, “EUR/JPY has so far seen a minor bounce from the uptrend support, today at 138.27. Rallies are expected to remain shallow – the market has recently seen repeated failure at the 140.70/141.06 resistance – this has shifted the focus to underlying support and in particular to the 2 month uptrend and 200 day ma at 138.04/137.32.”
“A close below here will cause the chart picture to deteriorate. Failure here will trigger losses towards the 134.57 55 day ma. Very near term we would allow for a small rally from here but look for failure ahead of 140.70/141.06.“
EUR/JPY Technical Levels
To the upside, the next resistance is located at 138.85 (Today’s High) levels and above which it could extend gains 139.16 (June 24 High) levels. To the downside immediate support might be located at 138.22 (June 24 Low) below that at 138 (June 15 Low) levels.