EUR/JPY: heading for danger zone

FXStreet (Guatemala) - EUR/JPY is currently trading at 133.55 with a high of 133.86 and a low of 133.36.

EUR/JPY has been better bid on a minor recovery despite USD/JPY falling through the cracks.

EUR/JPY price action and technical analyses

EUR/JPY has been better offered since the opening bearish gap this week and the cross is a sell on rallies from 136.00, 135.70, 135.40, 134.90 and 134.40. Yesterday's low was around 134.00 before handing over to the Europeans where supply continued and created the lowest levels since the end of May trade we now have the 133.10 May low that comes as a potential break down point to 131.80/61.8% retracement and then on to 129.28 being the 78.6% retracement.

EUR/JPY fundamentals

EUR/JPY is caught between a number of effects, but the Greece debacle's headlines overnight were less frequent while we await the outcome of deadlines and EU summit, Sunday, except that a Greece sent their ESM letter that was requesting a loan facility to be used to meet Greece’s debt obligations and to ensure stability of the financial system, with an expressed desire to clear their outstanding arrears with the IMF and the Bank of Greece.

The letter also outlined the time frame for delivering the outstanding proposal as, "The Greek government will on Thursday 9 July at the latest set out in detail its proposals for a comprehensive and specific reform agenda for assessment by the three Institutions to be presented to the Euro Group."

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