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22 Feb 2013
Forex: EUR/JPY stronger as German IFO surprises
The EUR/JPY is reacting stronger to better than expected German IFO February survey released during the European morning. All three criteria came in higher than expected: Business Climate rose from 104.3 to 107.4 (consensus of 105.0); Current Assessment rose from 108.1 to 110.1 (consensus of 108.5); Expectations rose from 100.6 to 104.6 (consensus of 101.3).
The EUR/JPY, already on the “green side” since the Asian session, extended gains from 123.40 to 123.76 high, for now. The cross has still some catching up to do in order to retrace this week's losses. Last Friday's close was at 124.93 but this week opened at 125.13.
“We note that the market is now trading below its 20 day ma for the first time since November. It is on the defensive and will require a rapid rebound and break higher through the top of the flag – this is currently at 125.40”, wrote Commerzbank analyst Karen Jones.
The EUR/JPY, already on the “green side” since the Asian session, extended gains from 123.40 to 123.76 high, for now. The cross has still some catching up to do in order to retrace this week's losses. Last Friday's close was at 124.93 but this week opened at 125.13.
“We note that the market is now trading below its 20 day ma for the first time since November. It is on the defensive and will require a rapid rebound and break higher through the top of the flag – this is currently at 125.40”, wrote Commerzbank analyst Karen Jones.