Forex: EUR/JPY bounces back to 115.00

FXstreet.com (Barcelona) - Despite the stronger Yen, bid overnight, the EURJPY is now regaining ground after reaching as low as 114.12 ahead of the European opening. The daily candlestick is still red, but Euro strength has pulled the cross back to the 115.00 mark after the release of a surprisingly expansionary Ivey PMI data in Canada adding to risk sentiment.

Investors are expected to price in expectations ahead of European data releases over the next days: EMU unemployment rate, consumer confidence, retail sales, and Germany trade balance tomorrow, EMU GDP on Wednesday, and the ECB's monetary policy announcement on Thursday. China data might also affect the market this week, with China retail sales, industrial production, trade balance, and CPI ahead.

The 200-week moving average, at 114.88. is a key juncture on the chart as well as a medium term upside objective and "we would not be surprised to see some consolidation in this zone", wrote Commerzbank analyst Karen Jones, pointing to support for dips at 111.43/57 (October 2011 high, March 2012 high and the short term uptrend).