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Forex pairs in this Article » USD/JPY
FXstreet.com (Barcelona) - After several wild gyrations in response to fundamental news flow, EUR/JPY is trading modestly to the downside for the session at 131.57 Monday.

EUR/JPY on its 5th different move of over 500 pips in the first several hours of trading

Elections in Japan, critical news out of Portugal and rumors of troubles for some of the world’s leading investment banks has tossed and turned the EUR/JPY every which way but loose several hours into Monday’s session.
The day started with a gap lower for EUR/JPY on a counter-intuitive reaction to the Japanese election news from Sunday. That move lower was quickly erased, though, and a move up to 132.23 quickly took place. Just after 12:00am GMT Monday, though, more serious selling came back into the fray foe EUR/JPY. That selling took the cross as low as 131.13 before another bounce attempt took place. At 2:23am GMT, EURJPY appears to be pressing higher at 131.579.

EUR/JPY setting up for more upside

Technicians noted Friday that the action in EUR/JPY was short-term bullish once the 131.109 level was eclipsed. Tim Thielen, CMT, of The Sea Change Report (www.seachangereport.com) says the break of resistance opened the door for a test of the 5/22 peak at 133.81. Short-term support for EUR/JPY is the 7/2 closing high of 130.58 followed by the 7/10 pivot low of 128.00. Resistance for EUR/JPY comes in at the 5/22 close at 132.64 followed by the afore-mentioned 133.81 above that.
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