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Forex pairs in this Article » EUR/JPY (San Francisco) - The euro climbed to its strongest since May 2011 versus the yen Thursday as unexpectedly strong Chinese data showed imports and exports at record highs, adding optimism for a faster global economic recovery. The common currency also found support on the European Central Bank's decision to hold rates unchanged, and after Draghi's showed no hint that more policy easing is ahead.

After breaking above 78.6% Fibonacci retracement resistance around 117.00 and recording a 2.6% daily gain at the closing bell in New York, EURJPY has just extended above the 118.00 mark in early Asia-Pacific trade, testing offers through 118.20 at the time of writing. If the bullish momentum persists, there looks to be room to run until 119.50 (Feb 21, 2010 low), then 120.70 (Jan, 31, 2010 low). Bearish targets lie at 116.00 (2 Jan high), 115.70 (3 Oct 2010 high) and 111.45 (21 Mar high).

Fundamentally speaking, "Japanese trade data might have some impact today but more likely it will be the Chinese CPI impact on risk sentiment which we need to look out for," comments Sean Lee, founder of FXWW.
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