EUR outlook weaker vs USD but stronger vs JPY

Euro against dollar dipped 36 pips to end yesterday's session. Both the ECB and the creditors persist to add pressure on the Greece government to arrive at an agreement by tomorrow.

We believe that consistent negotiations will prolong longer until the last minute (i.e. the EU Summit on 25/26 June).

On a flip side, EURJPY daily and weekly charts don't evidence the weakness despite oscillators have been consistently hanging on above overbought zone.

It's been almost 6 weeks that bulls are taking over the rallies as the slow stochastic ensures %K line remain above over %D line.

While relative strength index has been topping around at 58.1147 levels with averaged strong buying prices.

The chances of Yen's recovery can't be disregarded as the today's CPI for Euro area has not excited the streets much; we stayed little cautiously recommend below call even though upward bias on EUR/JPY seems intact.

So, the recommendation for speculating standpoint, buy HY current At-The-Money binary put options for a target upto 139.1859.

For hedging perspective, spreads using ATM calls and OTM puts are also suggested.