Forex: EUR/JPY, rally resumption subject to Greece; 106.00 trailing stops

FXstreet.com (Barcelona) - The paramount rally in EUR/JPY has taken a temporary pause after 8 days of incisive rises, with the pair having transitioned from the low extreme of its broken 100.40 - 104.00 range, to presently look firm enough to challenge fresh multi-month highs past 107.00 en-route to 107.80/90 should EU finance ministers agree to provide Greece the money it needs.

Another outcome might be a total or partial fiasco on Greece negotiations tonight in Europe, which in turn may see anti-Euro flows send the pair to extend its ongoing corrective leg from current 106.40 spot price to potentially target last Friday's low at 105.70 ahead of 105.50, April 11 low. The latest CFTC positioning data suggests growing bearishness among large specs to short the Yen, currently standing at 51K net shorts against 30K last.

According to FXWW Founder Sean Lee, "EUR/JPY is still seriously over-bought on most technical indicators but it’s not really showing any signs of an imminent collapse." Sean adds that trailing stops have been reported now below 106.00, suggesting that "they might get targeted depending on the EZ/IMF meeting outcome."

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