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9 Jul 2015
EUR/JPY falls to test key support after short-lived recovery
FXStreet (Córdoba) - EUR/JPY failed to hold in positive territory and recently printed a fresh daily low at 133.30, where yesterday’s lows lie. The area around 133.00 and 133.30 is a key support zone that capped the decline during May and also several time during the current week. A break lower could open the doors for a bigger slide.
The pair on Asian hours rose to 135.05 but quickly pulled back. During the American session dropped further and accelerated to the downside below 133.80.
Greece and risk aversion explain the decline
While the euro remains limited by the never-ending Greek crisis and the lack of resolution, the yen continues to rally in the market, boosted by risk aversion. After recovering during two month, from mid-March when it was trading at 126.60, the pair peaked early in June above 141.00. Since then it has fallen almost a thousand pips. Today EUR/JPY is about to post the lowest daily close in two months.
The pair on Asian hours rose to 135.05 but quickly pulled back. During the American session dropped further and accelerated to the downside below 133.80.
Greece and risk aversion explain the decline
While the euro remains limited by the never-ending Greek crisis and the lack of resolution, the yen continues to rally in the market, boosted by risk aversion. After recovering during two month, from mid-March when it was trading at 126.60, the pair peaked early in June above 141.00. Since then it has fallen almost a thousand pips. Today EUR/JPY is about to post the lowest daily close in two months.