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23 Apr 2013
Forex: EUR/JPY rebounds on surprising France PMI services
FXstreet.com (Barcelona) - The EUR/JPY is being pressured on the day by a new Yen corrective movement after the rally up to 130.67 high on investor cheering for G20/IMF approval of BoJ policy decisions. The cross reached as low as 128.54 today, but better than expected Markit PMI data in France triggered a EUR rally, with the market climbing to 129.16 already.
The preliminary release of April Markit Services PMI rose from 41.3 to 44.1, beating the 42.0 expectations, while the manufacturing figure rose from 44.0 to 44.4, above 44.3 consensus. Next in line in Germany and EMU data.
“Currently we are viewing this as the market consolidating ahead of tackling this resistance. Our slightly longer term target is 136.71, the upside measurement from a wedge”, wrote Commerzbank analyst Karen Jones, seeing initial support at the 127.71 February high ahead of 125, last week’s low.
The preliminary release of April Markit Services PMI rose from 41.3 to 44.1, beating the 42.0 expectations, while the manufacturing figure rose from 44.0 to 44.4, above 44.3 consensus. Next in line in Germany and EMU data.
“Currently we are viewing this as the market consolidating ahead of tackling this resistance. Our slightly longer term target is 136.71, the upside measurement from a wedge”, wrote Commerzbank analyst Karen Jones, seeing initial support at the 127.71 February high ahead of 125, last week’s low.