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Forex: EUR/JPY finds support at 126.00 handle

Having gone to as high as 126.70 on the European morning, the EUR/JPY eventually eased further down to the 126.00 psychological level, where it is finding support. The cross is down by -0.47% on the day as it corrects from Friday's strength, when it rallied to just below 127.00.

EMU Sentix Investor Confidence improved from -7 to -3.9 in February, still not as high as the expected -3. Spain added 132.10K unemployed in January, not as much as the 150K expected, but still a very negative change, taking in account December's -59.1K drop. In December, EMU PPI dropped -0.2% as expected, the same pace as in November. Although market consensus was pointing to an annualized rise from 2.1% to 2.2%, data stayed unchanged.

“EUR/JPY has broken its strong resistance at 123.33 and is now approaching the one at 127.92 (05/04/2010 high)”, wrote MIG Bank analyst Bijoy Kar, pointing to an hourly support at 122.99 (31/01/2013 low) and a key support is at 121.22 (29/01/2013 low).

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