On Saturday, Greece had called a referendum on whether to accept the latest terms from creditors, which caused a huge volatility in early trade on Monday. A break below important support at 133.07 will be bearish for EUR/JPY. It will indicate that a rally from a low of 126.05 has been only in three waves and thereby is a corrective one. If a breakout below 133.07 takes place, a new decline to 126.05 and lower is expected.
Amid that, stay cautiously bullish as long as important support at 133.07 protects the downside, but a breakout back above 139.17 will be needed to confirm the bullish outlook.
With an extreme volatility seen here, the best is to stay neutral and let things come down before entering a new position. So, we will stay neutral for now.
The material has been provided by InstaForex Company – www.instaforex.com