20 Jul 2015
EUR/JPY: focus remains on Greece
FXStreet (Guatemala) - EUR/JPY is currently trading at 134.52 with a high of 134.57 and a low of 134.33.
EUR/JPY is trading on the bid in early Asia in thin markets where little volume can have a great impact and this has been displayed in the cross where EUR/USD is up 10 pips at time of writing, and the Yen is firmer vs the greenback.
Aside from benign early price action in illiquid markets, focus for the cross will remain on Greece (as well as FED/ECB divergence) and whether markets will position for a successful outcome of the Greeks meeting their IMF and ECB payments on time today, now that the European Council approved the €7bn bridging loan for Greece from an EU-wide emergency fund, and how progress will be made towards the delivery of a successful third bailout and Greece meeting the reforms criteria.
Merkel said over the weekend that debt maturities and and lowering interest rates can be negotiated on in respect of the bailout package while former Greek Finance Minister Yanis Varoufakis told the BBC over the weekend that economic reforms imposed on his country by creditors are "going to fail", ahead of the talks on the huge bailout, adding, Greece was subject to a programme that will "go down in history as the greatest disaster of macroeconomic management ever".
EUR/JPY a sell on rallies
Technically, the price action remains a fade of rallies with 135.20 coming in as initial key resistance through 134.80/00. Targets to the downside, 133.80 and 133.30 open 133.10 key support ahead of 131.30 April highs.
EUR/JPY is trading on the bid in early Asia in thin markets where little volume can have a great impact and this has been displayed in the cross where EUR/USD is up 10 pips at time of writing, and the Yen is firmer vs the greenback.
Aside from benign early price action in illiquid markets, focus for the cross will remain on Greece (as well as FED/ECB divergence) and whether markets will position for a successful outcome of the Greeks meeting their IMF and ECB payments on time today, now that the European Council approved the €7bn bridging loan for Greece from an EU-wide emergency fund, and how progress will be made towards the delivery of a successful third bailout and Greece meeting the reforms criteria.
Merkel said over the weekend that debt maturities and and lowering interest rates can be negotiated on in respect of the bailout package while former Greek Finance Minister Yanis Varoufakis told the BBC over the weekend that economic reforms imposed on his country by creditors are "going to fail", ahead of the talks on the huge bailout, adding, Greece was subject to a programme that will "go down in history as the greatest disaster of macroeconomic management ever".
EUR/JPY a sell on rallies
Technically, the price action remains a fade of rallies with 135.20 coming in as initial key resistance through 134.80/00. Targets to the downside, 133.80 and 133.30 open 133.10 key support ahead of 131.30 April highs.