16 Jul 2015
EUR/JPY, a buy on dips awaiting positive Greek parliament vote?
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.49 with a high of 136.38 and a low of 135.35.
EUR/JPY has been dragged to the downside on dollar strength and is creating a bearish bias on the charts while we await the outcome of the Greek parliaments vote today.
Yellen delivered her testimony in the US session that set some fireworks off in the dollar and saw the euro down to a fresh week's low on the 1.09 handle. USD/JPY rallied up to test the 124 handle but met supply the capped the 60 pip run offering the bears in the cross some ground to the downside ahead of the next risk-off event in the Greek debacle.
The Greek parliament vote has a European deadline time of 12pm today and the Yen could be favoured throughout the prevailing uncertainty. However, Nick Lawson and Gaël Gunubu analysts at Deutsche Bank AG explained that today's vote in the Greek parliament should easily pass the majority required which in turn should provide a Greek free investment window until September.
"The noise will then rise once more as the ESM is negotiated with the potential for a new round of elections. The key issue could be the extent of the additional damage to the Greek economy such that when the Troika look under the bonnet they find a scenario that requires yet harsher conditions still in order to get back to pre-election parity. The IMF have again alluded to the impossibility of sustainability under the current and revised program. Only a significant write down or default will improve that dynamic."
Technically, 135.60 and 135.80 guard 136.10/40 and 137.00. Dips lower are indicated to find some support around 135.00 ahead of 133.57/10.
EUR/JPY has been dragged to the downside on dollar strength and is creating a bearish bias on the charts while we await the outcome of the Greek parliaments vote today.
Yellen delivered her testimony in the US session that set some fireworks off in the dollar and saw the euro down to a fresh week's low on the 1.09 handle. USD/JPY rallied up to test the 124 handle but met supply the capped the 60 pip run offering the bears in the cross some ground to the downside ahead of the next risk-off event in the Greek debacle.
The Greek parliament vote has a European deadline time of 12pm today and the Yen could be favoured throughout the prevailing uncertainty. However, Nick Lawson and Gaël Gunubu analysts at Deutsche Bank AG explained that today's vote in the Greek parliament should easily pass the majority required which in turn should provide a Greek free investment window until September.
"The noise will then rise once more as the ESM is negotiated with the potential for a new round of elections. The key issue could be the extent of the additional damage to the Greek economy such that when the Troika look under the bonnet they find a scenario that requires yet harsher conditions still in order to get back to pre-election parity. The IMF have again alluded to the impossibility of sustainability under the current and revised program. Only a significant write down or default will improve that dynamic."
Technically, 135.60 and 135.80 guard 136.10/40 and 137.00. Dips lower are indicated to find some support around 135.00 ahead of 133.57/10.