As the uncertainty in Europe around Greek problem is arising, investors seek safe-haven resort, such as the Yen.
After the upbeat expectations that the agreement is going to be reached between Greece and its creditors by the end of the week, markets are returning to the pessimistic mood. During the Asian session on Thursday, Shanghai Composite fell by 3.5% to 4 527.78 points, Chinese Csi300 fell by 3.6% to 4706.52 points, Nikkei Stock Average fell by 0.5% to 20771.40 points. The Yen strengthened against the Euro and the USD.
Heads of the EU are meeting today at 5 pm (GMT +3) at the summit to discuss economic issues inside the Union, the main one of which is obviously Greece.
Before the end of June Greece should pay its creditors 1.54 billion Euro and without a 245 billion Euro help from the IMF is likely to default and quit the Eurozone. The consequences for the EU may also be serious.
Support and resistance
From the beginning of June the pair is trading in the channel between 140.75 (61.8% Fibonacci) and 138.10 (50% Fibonacci). Most likely, in the medium term the pair is going to be traded between 135.50 and 136.20.
Since opening today, the pair is moving down towards support levels at 138.10 (50% Fibonacci), 137.30 (EMA200 on the 4-hour chart).
After the breakdown of 138.10 the price continues towards 135.50 (38.2% Fibonacci), 136.20 (EMA200 on the daily chart), 132.25 (23.6% Fibonacci).
On the 4-hour and daily charts, OsMA and Stochastic are in the sell zone.
Support levels: 138.00, 137.30, 136.20, 135.50.
Resistance levels: 138.70, 139.40, 140.00.
Open short positions from the current levels with targets at 137.30, 136.20, 135.50 and stop-loss at 139.10.
Long positions can be opened after the breakout of 139.40 with targets at 140.75 and 143.00.