EURJPY Analysis: Support at 137.62/136.95, resistance at 139.15/140.62

Financial markets are taking the uncertainty of the negotiations between Greece and its creditors rather calmly. Despite a very real risk of a default on 30th June, markets have held up remarkably well. There has been a lack of real selling pressure on key markets, whilst the classic havens of gold, the yen and Swissy have been ranging along with other markets rather than catching a bid. The next couple of days are crucial for the negotiations. Angela Merkel has warned of the gravity of the situation and said that a deal needs to be done by the weekend. National parliaments need to vote on the proposals and this all needs to be done before the deadline of Greece’s €1.6bn on Tuesday.
There has been a slight slip in equity markets over night with the S&P 500 down by 0.3% whilst Asian markets were also weak (although some of this could be due to the huge selling pressure in China. European markets have also started the day on the back-foot again and it will be interesting to see if there is another day of fluctuations like yesterday.
Forex markets have come into the European session with consolidation mode, but euro and sterling slightly lower. The Aussie and Kiwi have been the main movers as they have come off slightly in reaction to the selling pressure in China. The precious metals also remain weak. There is very little by way of economic announcements for traders to get their teeth into today, with only the revision to the University of Michigan consumer sentiment at 1500BST, with 94.6 expected which would be no change on the flash number. As ever though focus will remain on the newsflow over progress (or lack of) in negotiations over a deal for Greece.