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Forex pairs in this Article » EUR/JPY (Barcelona) - The EURJPY is currently down by -0.72% on the day, just under the 122.00 psychological level, after falling across the chart during the Asian session and European opening to as low as 122.63. The Yen is correcting after extreme weakness in early trade that allowed a move to 122.91 high.

During the European morning, EMU money supply was released, easing from 3.8% to 3.3% (YoY) in December, instead of rising to 3.9%. The 3m basis registed a rise from 3.4% to 3.7%. Private Loans contracted -0.7% in December (YoY).

Headlines on Monday show talks about Cyprus and its potential risks to euro stability, with the German Finance Ministry saying that the country must be systemically relevant to get aid from the Troika. ECB's Coene said that, ideally, the OMT programme would never be used. He added that there is no currency war, yet.

The ECB revealed a return to deposits in December: +4.1% in Greece, +2.2% in France, and +0.3% in Spain. However, Germany noted a -1.5% drop, as well as Cyprus, by -0.6%.

"EURJPY is poised to reach an interim target of the 123.00/33 2011 high and 38.2% retracement of the move down from 2008, where we suspect that we may see some profit taking", wrote Commerzbank analyst Karen Jones, pointing to supports at 118.02 and 116.22.
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