EUR/JPY: breaking 124 handle to the downside on the 'Greek news'

Ross J Burland FXStreet

Currently, EUR/JPY is trading at 123.86, down -0.29% on the day, having posted a daily high at 124.29 and low at 123.82.

EUR/JPY has made fresh lows in early Asia in very thin trade from holiday mode markets. This comes on the heels of the Greek news that very quickly took EUR down to its lowest level since 19th May.

Greece threatens to opt out of next bailout payment without a debt deal - Bild

Bild came with the headlines but are not citing sources yet saying that the Greek government is preparing to possibly go without next bailout payment (amount of EUR 7bn) if creditors cannot agree on debt relief. This took all euro crosses down a significant number of pips.

For the day ahead, we await Japan's April unemployment and retail sales data. While this is second tier data, with markets as thin as they are, any significant surprises could be a mover. Markets are already expecting an improvement from March figures. "Better-than-expected figures will likely become JPY supportive, as it will mean that BOJ's easing policy will be approaching to an end," explained Valeria Bednarik, chief analyst at FXStreet.

EUR/JPY 4hr chart

Valeria Bednarik, chief analyst at FXStreet - "Technically, the 4 hours chart presents a neutral-to-bearish stance, as the price remains trapped around its 100 DMA, but technical indicators keep declining within oversold territory. An extension below 124.00, should favor additional slides towards 123.20, the 23.6% retracement of the bullish run between 114.83 and 158.80 between April and May."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

GBP/USD surges to multi-day peaks past 1.3250

GBP/USD leaves behind Friday’s small pullback and advances past 1.3250 level, or five-day highs, on Monday. Cable’s upside follows extra losses in the Greenback, while traders continue to assess the geopolitical front and upcoming key events.

EUR/USD picks up extra pace north of 1.1400

EUR/USD extends its recovery past 1.1400 the figure as the NA session draws to a close on Monday. Indeed, the pair advances for the third straight day amid the persistent offered bias in the US Dollar. Meanwhile, market participants keep gearing up for the ECB Forum in Sintra and the release of critical US labour market data.

Gold struggles to attract investors

Gold remains under marked selling pressure, holding on just above the key $4,000 mark per troy ounce at the beginning of the week. The precious metal reverses two daily advances in a row as renewed effervescence in the Middle East revive inflation concerns and bolster Fed rate hike expectations.

Strategy unveils plan allowing Bitcoin sales to fund stock buybacks, dividends and reserves

Strategy (MSTR) has unveiled a Digital Credit Framework to strengthen the company’s financial standing. Under the new framework, the world’s largest corporate holder of Bitcoin (BTC) will pivot from its previous accumulation strategy, opting to sell BTC in order to boost liquidity, fund dividend payments, execute stock buybacks, and strengthen cash reserves.

Just like Fed, is BoJ’s independence under threat?

When talking about central bank independence, most of the focus has been on Donald Trump’s pressure on the Federal Reserve. But a similar story, a quieter one for now, seems to be happening on the other side of the Pacific: Japan’s government may be testing the Bank of Japan’s independence.

Kevin Warsh isn't expected to say much in Sintra: That's exactly why markets will listen

Financial markets could find an important catalyst in the enchanting, fairytale-like landscape of Sintra this week. The ECB Forum will, as it does every year, gather the crème de la crème of central banks. The new boss at the Fed, who has clearly said that the Fed should stop explaining everything, will need to talk – and traders should listen.