EUR/JPY back below 135, Greece risks weigh

FXStreet (Mumbai) – EUR/JPY dives deeper in to losses in the early European trades, largely driven by a fresh pick-up in buying interest seen around the Japanese currency ahead of Europe open while the shared currency remains heavily in to losses as Greek debt debacle looms.

EUR/JPY eyes 134.43 lows

Currently, the EUR/JPY pair trades -2.44% lower at 134.95, retreating from 135.68 highs recorded at Tokyo open. The cross in EUR/JPY is the biggest loser among the yen crosses so far, largely as uncertainties over Greece repayments offers a double blow to the cross as the European currency remains undermined on Greek default fear while on the other hand yen receives support on safe-haven demand amid heightening risk-off sentiments.

On Greece front, the debt-embattled nation will hold a referendum on July 5 on whether or not to meet its creditors’ austerity demands, but until then the debt-ridden nation has been advised to keep banks closed to avoid a bank run, following large withdrawals on Friday and over the weekend.

Gregory McKenna of Go Markets notes, “A few days back I started talking about this breaking lower. It has started as you can see. But the move will accelerate if EURJPY breaks down and through the support zone which includes my slow moving and the 200 day average. We are there now and I’m taking half the position off. Short term this one looks very oversold but I’m looking for a move to 132.85 in time. Hence still 50% short.”

EUR/JPY Technical Levels

To the upside, the next resistance is located at 135.68 (Today’s High) levels and above which it could extend gains 136 levels. To the downside immediate support might be located at 134.43 (Today’s Low) below that at 133.78 (June 28 Low)levels.

EUR/JPY dives deeper in to losses in the early European trades, largely driven by a fresh pick-up in buying interest seen around the Japanese currency ahead of Europe open while the shared currency remains heavily in to losses as Greek debt debacle looms.

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