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Forex pairs in this Article » EUR/JPY (Barcelona) - The EURJPY jumped on the European opening with higher hopes for the Eurozone as the IMF Chief Lagarde is calling for less austerity and more time for the peripheral countries to meet their budget targets. Also, the OMT programme could be closer as the recent Spanish credit rating downgrade to BBB- by S&P could trigger the rise of debt yields and pressure PM Rajoy to request a bailout.

The EURJPY rallied 40 pips to 101.84 ahead of the Italian CPI inflation report for September, followed by EMU industrial production in August. The French current account deficit widened from ¬-2.5B to ¬-4B in August.

"While this was impressive (rally to 101.15), recent price action has seen the market stall at its 4 year downtrend at 102.88", wrote Commerzbank analyst Karen Jones, expecting eventual failure and a slide back to the 99.50 September low.
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