15 Jun 2015
EUR/JPY: Bulls looking to the bearish gap
FXStreet (Guatemala) - EUR/JPY is currently trading at 138.37 with a high of 138.59 and a low of 138.06.
EUR/JPY has been on the offer at the start of the week while yet further delays on progress towards a deal between Greece and European leaders that took place over the weekend. Essentially, the Greeks are not willing to make the cuts at Athens that the creditors require and the euro is yet again at the mercy of the bears. The Yen is also backed up by a market that is switching their expectations of lower levels at this juncture with Japanese officials talking USD/JPY from the recent yearly highs.
This week holds the BoJ decision at the end of the week and this will
likely hinge on Kuroda’s recent comments on JPY and whether 125 is meant to be the line in the sand. There will be caution leading in to this event and the cross could be a volatile play this week on a number of angles, including Greece and the Eurogroup/EcoFin meetings around the same dates.
Technically, the bearish gap is under threat as bids are emerging as we progress at the start of the week with 138 as first support ahead of 136.80 on a break through the 137 handle. RSI (14) sits at 42.6 while 138.80 bridges the gap and comes as first resistance.
EUR/JPY has been on the offer at the start of the week while yet further delays on progress towards a deal between Greece and European leaders that took place over the weekend. Essentially, the Greeks are not willing to make the cuts at Athens that the creditors require and the euro is yet again at the mercy of the bears. The Yen is also backed up by a market that is switching their expectations of lower levels at this juncture with Japanese officials talking USD/JPY from the recent yearly highs.
This week holds the BoJ decision at the end of the week and this will
likely hinge on Kuroda’s recent comments on JPY and whether 125 is meant to be the line in the sand. There will be caution leading in to this event and the cross could be a volatile play this week on a number of angles, including Greece and the Eurogroup/EcoFin meetings around the same dates.
Technically, the bearish gap is under threat as bids are emerging as we progress at the start of the week with 138 as first support ahead of 136.80 on a break through the 137 handle. RSI (14) sits at 42.6 while 138.80 bridges the gap and comes as first resistance.