26 Jun 2015
EUR/JPY off lows, back to 138
FXStreet (Mumbai) - EUR/JPY recovered from a brief dip to session lows and now trades around 138 handle in the early European trades, keeping heavy losses from Asia, largely on the back of strengthening Japanese yen, while Greece concerns remained the underlying factor affecting both the JPY and EUR.
EUR/JPY rejected at 138.50
Currently, the EUR/JPY pair trades -0.40% lower at 138, retreating from fresh session lows of 137.80. The cross in EUR/JPY remains pressured mainly driven by a rising yen versus its US counterpart after demand for safe-haven assets on Greece deadlock and upbeat domestic inflation data provided some support.
On the EUR-side, the EUR/USD pair largely remains subdued after the Euro group meeting ended with no deal reached on Thursday and Greece talks to be continued at the Saturday gathering.
Karen Jones, Analyst at Commerzbank believes, “EUR/JPY has eroded uptrend support, but failed to maintain downwards pressure and could not manage to tackle the 200 day ma at 137.30. We are unclear if this is a potential top or a consolidation. However – the market has recently seen repeated failure at the 140.70/141.06 resistance – this has shifted the focus to support. “
“A close below 137.30 will cause the chart picture to deteriorate. Failure here will trigger losses towards the 134.76 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 levels and above which it could extend gains 138.49 (Today’s High) levels. To the downside immediate support might be located at 137.61 (June 25 Low) below that at 137.20 levels.
EUR/JPY rejected at 138.50
Currently, the EUR/JPY pair trades -0.40% lower at 138, retreating from fresh session lows of 137.80. The cross in EUR/JPY remains pressured mainly driven by a rising yen versus its US counterpart after demand for safe-haven assets on Greece deadlock and upbeat domestic inflation data provided some support.
On the EUR-side, the EUR/USD pair largely remains subdued after the Euro group meeting ended with no deal reached on Thursday and Greece talks to be continued at the Saturday gathering.
Karen Jones, Analyst at Commerzbank believes, “EUR/JPY has eroded uptrend support, but failed to maintain downwards pressure and could not manage to tackle the 200 day ma at 137.30. We are unclear if this is a potential top or a consolidation. However – the market has recently seen repeated failure at the 140.70/141.06 resistance – this has shifted the focus to support. “
“A close below 137.30 will cause the chart picture to deteriorate. Failure here will trigger losses towards the 134.76 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 levels and above which it could extend gains 138.49 (Today’s High) levels. To the downside immediate support might be located at 137.61 (June 25 Low) below that at 137.20 levels.