iNVEZZ (Brussels) The EUR/JPY fell below the 101 mark, last at 100.53 or 0.48 percent down. The yen is even stronger than the USD and it pushed the USD/JPY pair to previous lows of 79.43. Immediate support of the euro will be at the 100.47 mark, followed by 11 October lows of 100.14 and 1 October bottom of 99.75. If bullish the closest resistance will be at 100.87, followed by yesterday’s peak of 101.30 and Friday’s highs at 101.77.
As with most euro pairs the focus is on the Eurogroup’s delay in approving additional bailout funds to Greece after the Greek parliament voted on and passed more austerity measures. Investors remain in the dark as to whether Greece will receive the proposed aid package and stay in the Eurozone. Traders have moved to safe havens such as the dollar and a sentiment of risk aversion is resulting in continued gains for the yen. The advance of the JPY comes despite Monday’s report that showed the Japanese economy contracted in the last quarter and Bank of Japan’s further monetary easing.
According to the Forexpros, if the 11 October low of 100.14 is broken by the EUR/JPY pair it would mean the 94.11 rebound is over and the 94.11 mark could be tested once again.