Forex: EUR/JPY reaches 121.55 ahead of German IFO

FXstreet.com (Barcelona) - Yesterday's upmove signaled the end of the correction lower, with the cross breaching above the 120.00 psychological level. The EURJPY kept on going and continues to print new highs as the Japanese Yen weakens while the EUR strengthens.

As of writing, the market trades at 121.56 high ahead of the German IFO survey due at 09:00 GMT. Earlier, Spain revealed its easing PPI from 2.8% to 2.7% in December (YoY). Very important today is ECB's announcement of details in regard to early repayments of the first 3-year LTROs (¬489.2B) that are due to start in Jan-30.

"We look for a move towards 121.55, the 61.8% retracement of the move down from the end of 2009 en route to the 123.00/33 2011 high and 38.2% retracement of the move down from 2008, where we suspect that we may see some profit taking", wrote Commerzbank analyst Karen Jones, pointing to the 6 week uptrend at 117.68 as support, reinforced by the 2 month uptrend at 115.93. "While this holds an upside bias persists", Jones added.