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6 Mar 2013
Forex: EUR/JPY capped by 122.00 area
The EUR/JPY has been picking on the 122.00 mark, spiking to as high as 122.08, but resistance there is keeping the cross from the upside. Right after the European opening, the market retraced those gains back to the opening price of 121.75 and it is now quiet after EMU GDP.
GDP Q4 contracted by -0.6% as expected and the annualized figure dropped further, from -0.6% to 0.9%, also as predicted. The economic calendar is now empty for the rest of the European morning.
"While would allow for a slight rebound from here, the recent sell off was damaging and we would allow for an extension of losses to 117.29 then 114.07, this is the 38.2% and 50% retracements of the move up from November", wrote Commerzbank analyst Karen Jones, pointing to intraday resistance at 122.16, 123.22 (minor Fibonacci retracements).
GDP Q4 contracted by -0.6% as expected and the annualized figure dropped further, from -0.6% to 0.9%, also as predicted. The economic calendar is now empty for the rest of the European morning.
"While would allow for a slight rebound from here, the recent sell off was damaging and we would allow for an extension of losses to 117.29 then 114.07, this is the 38.2% and 50% retracements of the move up from November", wrote Commerzbank analyst Karen Jones, pointing to intraday resistance at 122.16, 123.22 (minor Fibonacci retracements).