Forex: EUR/JPY finds support at 126.00 handle

FXstreet.com (Barcelona) - Having gone to as high as 126.70 on the European morning, the EURJPY eventually eased further down to the 126.00 psychological level, where it is finding support. The cross is down by -0.47% on the day as it corrects from Friday's strength, when it rallied to just below 127.00.

EMU Sentix Investor Confidence improved from -7 to -3.9 in February, still not as high as the expected -3. Spain added 132.10K unemployed in January, not as much as the 150K expected, but still a very negative change, taking in account December's -59.1K drop. In December, EMU PPI dropped -0.2% as expected, the same pace as in November. Although market consensus was pointing to an annualized rise from 2.1% to 2.2%, data stayed unchanged.

"EURJPY has broken its strong resistance at 123.33 and is now approaching the one at 127.92 (05/04/2010 high)", wrote MIG Bank analyst Bijoy Kar, pointing to an hourly support at 122.99 (31/01/2013 low) and a key support is at 121.22 (29/01/2013 low).