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Forex: EUR/JPY at 130.00 area and looking to 131.13 April-11 high

FXstreet.com (Barcelona) - The EUR/JPY keeps moving higher on Monday after G20/IMF’s green light to BoJ monetary easing and its implications for JPY. The cross had rallied 2200 pips to 131.13 high in reaction the central bank’s decision in April, more intervening than expected, and its corrective movement touched the 125.00 psychological level. The market is now moving back towards its highs, at 130.11 after printing a daily high at 130.67 during the Asian session and testing 130.00 for support during European time.

Reuters reported that Luxembourg Finance Minister Frieden said the Cyprus bail-in shouldn’t be repeated and that the Eurozone has to be able to intervene in troubled countries without formal request from such country. The EUR/USD isn’t particularly fussing about such comments.

Greece current account deficit widened from €-0.222B to €-0.716B in February. The preliminary release of EMU consumer confidence in April due at 14:30 GMT is expected to drop from -23.50 to -23.85. US existing home sales should ease its rising pace from 0.8% to 0.6% (MoM) with a move from 4.98M to 5.01M in March.

“The EUR/JPY eroded the 128.80/85 minor Fibonacci retracement on Friday and starts this week well placed to tackle the 131.12 recent high. Our slightly longer term target is 136.71, the upside measurement from a wedge”, wrote Commerzbank analyst Karen Jones.

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