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18 Feb 2013
Forex: EUR/JPY higher on Japan PM Abe's words
The European opening pulled the EUR/JPY back to the daily opening price of 125.16, but the EUR/JPY has been moving higher again. As of writing, the market trades at 125.39 (+0.37% on the day) after the release of EMU current account.
The cross trades higher on Monday due to Yen weakness as Japan's PM Abe considers removing the BoJ’s independence should the central bank fail to achieve 2% inflation.
Seasonally adjusted current account in the Eurozone shows a narrower surplus from €15.9B (revised from €14.8B) to €13.9B in December, still higher than the expected €13.9B. Non-adjusted data widened from €20.8B (revised from €19.8B) to €27B, coming lower than the expected €30B.
"It is unclear if this is a top or a continuation pattern, but it looks more like a potential bull flag and while under pinned by trendline support at 120.62 an upside bias will remain", wrote Commerzbank analyst Karen Jones, pointing to support at 123.18 and near term resistance at 126.17.
The cross trades higher on Monday due to Yen weakness as Japan's PM Abe considers removing the BoJ’s independence should the central bank fail to achieve 2% inflation.
Seasonally adjusted current account in the Eurozone shows a narrower surplus from €15.9B (revised from €14.8B) to €13.9B in December, still higher than the expected €13.9B. Non-adjusted data widened from €20.8B (revised from €19.8B) to €27B, coming lower than the expected €30B.
"It is unclear if this is a top or a continuation pattern, but it looks more like a potential bull flag and while under pinned by trendline support at 120.62 an upside bias will remain", wrote Commerzbank analyst Karen Jones, pointing to support at 123.18 and near term resistance at 126.17.