EUR/JPY: staging a come back for the gap

FXStreet (Guatemala) – EUR/JPY is currently trading at 138.10 with a high of 138.14 and a low of 133.76.

EUR/JPY has some way to go in order to close the gap that was made in Asia down to 137.76, and given the Yen’s strength on the safe haven status that it holds in times of uncertainty; We certainly have plenty of uncertainty ahead of us. Greece has been the culprit of the moves in the euro at the start of the week as markets get prepared for the outcome of a referendum in the nation that is about to default on their requirement to repay the IMF €1.5bn it owes, as reported officially in the last hour or so as markets now await a statement to follow from the IMF.

There are uncertainties even around what will come of this week between the EU and Athens, as a week is a very long time in politics and much can change between now and the timing of the referendum this Sunday. The Yen has remained close to the lows of the gap from 123.80 to 122.11 vs the greenback, currently 122.49, while vs the euro, the Yen has staged a recovery on the back of demand in the US for the single currency despite the crisis taking fold as European leaders urge Greece to come back to the negotiating table, with the Eurogroup head, Dijsselbloem commenting, “…the door remains open to Greece.”

EUR/JPY on continued uncertainty on Greece

It is conceivable that there will be volatility around the Greek debacle and that should keep the Yen in favour and revert attention back to the downside in the cross. This would expose the 133.10/57 May lows and the 50% retracement and a break with closes here would open up territory down to 131.80, being the 61.8% retracement. Within the volatility, the gap could be targeted at 138.20, then there is little potential beyond 140.00 given the resistance and repeated failures of late at 1.4070/141.06 as noted by Karen Jones, chief analyst at Commerzbank.

EUR/JPY is currently trading at 138.10 with a high of 138.14 and a low of 133.76.

(Market News Provided by FXstreet)