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7 Feb 2013
Forex: EUR/JPY rallies 100 pips on European opening
In less than one hour, the EUR/JPY has already rallied 100 pips, from 126.36 to 127.36, as the European trading starts and investors price in expectations ahead of the ECB monetary policy decision and Draghi's press conference. Such events will take place at 12:45 GMT and 13:30 GMT.
In the meanwhile, the market absorbs French trade data: the trade deficit with the EU widened from €-4.3B to €-5.3B in December, instead of narrowing slightly to €-4.2B as expected. Both imports (€43.137B) and exports (€37.788B) increased. The annualized Spanish industrial output came in higher, from -7% (revised from -7.2%) to -6.9% in December.
“We are wary of a correction lower near term, but acknowledge with little sign of reversal currently, the market is capable of reaching the next resistance at 127.93 the April 2010 high and even 129, the 78.6% retracement of the move down from 2009”, wrote Commerzbank analyst Karen Jones.
In the meanwhile, the market absorbs French trade data: the trade deficit with the EU widened from €-4.3B to €-5.3B in December, instead of narrowing slightly to €-4.2B as expected. Both imports (€43.137B) and exports (€37.788B) increased. The annualized Spanish industrial output came in higher, from -7% (revised from -7.2%) to -6.9% in December.
“We are wary of a correction lower near term, but acknowledge with little sign of reversal currently, the market is capable of reaching the next resistance at 127.93 the April 2010 high and even 129, the 78.6% retracement of the move down from 2009”, wrote Commerzbank analyst Karen Jones.