Will there be a trend change on the GBP/JPY?

The Pound versus the Yen has kept a good uptrend and once it reached the 196.00 level on the daily chart, it stopped there and bounced to the downside. The price dropped more than 300 pips after the bounce and breaks below the 193.00 level. At the same time the price breaks the bullish trendline indicating a possible change in the trend. If the price keeps dropping, then the 190.00 may act as a support. If the price goes back up, the 196.00 level may act again as resistance.

The Euro fills up the gap and returns to Friday’s high

The drop in the Euro did not last long, due to the fact that there is speculation that the markets have already priced in a possible Grexit and it is believed that the European Central Bank has enough resources to mitigate any adverse effects from Greece leaving the EU. The Euro comes back to the upside, but we do not know for sure how it will react to the Non-Farm Payrolls, which if it comes out better than expected, we may see the EURUSD come back down. It is also believed that whatever happens with Greece, it will not change the future plans of the FED of raising its interest rates.

No major movements in the markets

Currencies were somehow volatile for today, but no clear direction. It seems like the big players are staying on the sidelines, just awaiting a solution to the Greek dilemma. Over the weekend markets are closed and investors and traders were not willing to leave big positions open, because we don’t know for sure what may happen with Greece. If no deal is reached tomorrow, Saturday, then they still have until Tuesday to come to an agreement. Therefore, we may still be on stand-by mode until next week.

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The EUR/GBP bounces from the 0.7100 level

Yesterday the Euro versus the Pound dropped to the 0.7100 level and it stopped at that round number level. Today we see that the price has bounced from that level to the upside, but the bearish trend is still in place on this pair. We are awaiting a possible breakout of the trendline, which could take the price to the 0.7200 level, but we cannot be so sure about a trend change until the price definitely breaks above the 0.7200 level. A breakout below the 0.7100 level could cause the bearish momentum to accelerate and its next support could be the 0.7000 level.

The Euro appears to be taking back its bearish trend

The Euro weakens for today versus the Dollar and it seems like it wants to retake its longer-term bearish trend, due to the fact that the markets are focusing again on the divergence between the monetary policies of the Federal Reserve of the United States and the European Central Bank. While the European stocks rise due to a possible agreement between Greece and its creditors, the Euro weakens as it is being used to finance the purchase of higher yielding currencies in a move known as the Carry Trade.

How low can the Kiwi drop?

The New Zealand Dollar continues weakening versus the US Dollar, especially on a day like today when the Dollar has been gaining a lot of strength versus its main counterparts. It is possible that the pair keeps its bearish trend, due to the fact that the Reserve Bank of New Zealand is currently easing on its monetary policy while the FED is thinking about raising its interest rates for this year. The next important support for the NZD/USD could be the 0.6800 level. A visit to that level may cause the price to stall there, but we must keep in mind that the bearish trend is still in place.