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Forex pairs in this Article » EUR/JPY (Barcelona) - The EURJPY continues under stress as the JPY rebounds from extended weakness triggered by Japan economy minister Amari's concerns of a "too weakened" currency. The Euro is also adding to the EURJPY decline as it's been pressured by Juncker's statement that its price was 'dangerously high'.

The monthly Eurozone CPI inflation rose 0.4% in December, beating the 0.3% consensus, with the annualized Core figure rising from 1.4% to 1.5%, while the headline remained at 2.2%.

Earlier, the Italian global trade surplus was seen narrowing from ¬2.42B (revised from ¬2.452) to ¬2.363B in November, and its EU-trade figure narrowed from ¬0.949B (revised from ¬0.981B) to ¬0.508B. Ahead will be the results of the German bund auction, targeting ¬5B of funds.

Since early Tuesday trading until the European session opening, the EURJPY has fallen from the 120.00 mark to 116.47 low. The cross then bounced back to 117.00 on the EMU CPI inflation report release.

"Dips lower will find initial support at 116.00, the 2nd January high ahead of 113.45, the 2 month uptrend. The 200 week ma is also found at 114.90", wrote Commerzbank analyst Karen Jones, targeting 123.00/33 (2011 high and 38.2% retracement of the move down from 2008) after the current pullback.
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