Forex: EUR/JPY rallies on Nowotny's comment after Juncker

FXstreet.com (Barcelona) - After printing a daily low at 116.47, the EURJPY has been running to the upside throughout the European session, first in expectation of EMU CPI inflation report and the German bund auction, but ECB's Nowotny triggered a Euro rally only capped at 117.37 high.

ECB's Austrian member Nowotny shrugged off Juncker's recent statement, not being concerned with the euro exchange rate. ECB's Praet had said that there's no exchange-rate target earlier this morning.

The German bund auction sold ¬4.007B of 10-year bunds out of ¬5B targeted, finding its highest average yield since October 24, at 1.56% (previously at 1.4%).

As of writing, the EURJPY trades at 117.25. "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, expecting the cross to pick up eventually and rise towards the 123.00/33 2011 high and 38.2% retracement of the move down from 2008.