31 Jul 2015
EUR/JPY: Greek risks mounting again
FXStreet (Guatemala) - EUR/JPY is currently trading at 135.68 with a high of 135.89 and a low of 135.64.
EUR/JPY is drifting to the downside as the less committed bull start to leave the room as we head into the closing sessions for the month. There are risks ahead this weekend and next week is lily to be action packed with the forthcoming jobs data from the US after a slightly hawkish FOMC statement this week.
The risk this weekend comes with the Greek parliament fall outs and the IMF recently saying that they will not back a Greek debt programme until Athens and its creditors find a way to collaborate to make the country's debt sustainable and that they will not sign up to any formal support programme unless eurozone creditors reach "explicit and concrete' agreement.
EUR/JPY could be offered on IMF opting out
This all means that without the IMF's involvement, the eurozone partners of Greece will have to find funds to meet Athen's short-term financing need which puts in to questions whether the agreed values of the bailout are at all justifiable. This all could support the Yen and see EUR/JPY lower still.
EUR/JPY short-term neutral, longer-term bearish
Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained earlier that in the short term hourly charts, the technical indicators have lost their bearish strength, but remain near oversold levels, limiting the possibility of a stronger advance. "In the 4 hours chart, the technical indicators head lower below their mid-lines, whilst the price pressures a horizontal 20 SMA, supporting a continued decline on a break through 135.40, the immediate support."
EUR/JPY is drifting to the downside as the less committed bull start to leave the room as we head into the closing sessions for the month. There are risks ahead this weekend and next week is lily to be action packed with the forthcoming jobs data from the US after a slightly hawkish FOMC statement this week.
The risk this weekend comes with the Greek parliament fall outs and the IMF recently saying that they will not back a Greek debt programme until Athens and its creditors find a way to collaborate to make the country's debt sustainable and that they will not sign up to any formal support programme unless eurozone creditors reach "explicit and concrete' agreement.
EUR/JPY could be offered on IMF opting out
This all means that without the IMF's involvement, the eurozone partners of Greece will have to find funds to meet Athen's short-term financing need which puts in to questions whether the agreed values of the bailout are at all justifiable. This all could support the Yen and see EUR/JPY lower still.
EUR/JPY short-term neutral, longer-term bearish
Meanwhile, Valeria Bednarik, chief analyst at FXStreet explained earlier that in the short term hourly charts, the technical indicators have lost their bearish strength, but remain near oversold levels, limiting the possibility of a stronger advance. "In the 4 hours chart, the technical indicators head lower below their mid-lines, whilst the price pressures a horizontal 20 SMA, supporting a continued decline on a break through 135.40, the immediate support."