EUR/JPY June lows 133.76 back in to focus

FXStreet (Guatemala) – EUR/JPY is currently trading at 136.04 with a high of 137.78 and a low of 135.88.

EUR/JPY closed Europe and was handed over to the US session earlier in the red as markets fell back in to risk off mode, supporting the Yen and shunning the euro on uncertainties over Greece.

EUR/JPY price action

EUR/JPY found a strong bid form the off in european trading after a strong downtrend from Asia and lows of 135.88. The rally reached a high of 137.53 in London before supply walloped the cross down to current aforementioned lows in the US session.

EUR/JPY fundamentals in the balance of Greek headlines

The Greek referendum is scheduled to take place on Sunday this weekend but we have heard that new proposals were put forward from Greece earlier that lifted the euro as it appears that Greece wish to stay in the euro. However, Athens put these forward to the creditors today for a 2-year bailout program that will not include the IMF and it appears that the referendum needs to take place now before anything new can be considered from the EU creditors. From the calendar, CPI’s in Europe were in line while we now await the Tankan surveys for Japan tonight in the Asian shift.

EUR/JPY technically back below the gap still and bearish

EUR/JPY had filled the gap to 137.66 but has been taken back down with strong supply compromising the otherwise positive elliot wave counts and neutralising the bullish direction. This is putting the bullish target zone of 140.70/141.06 and recent highs back in to the distance as the Yen continues to play out its safe haven roll and bringing 133.76 28 June lows back in to focus within April’s uptrend from 129.09.

EUR/JPY is currently trading at 136.04 with a high of 137.78 and a low of 135.88.

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