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Forex pairs in this Article » USD/JPY (Barcelona) - Having rallied to 79.61 high on stronger and above consensus Chinese industrial production, retail sales and urban investment, at +9.6%, +14.5% and +20.7%, respectively, and lower CPI from +1.9% to +1.7% in October, the USDJPY soon retreated from its position and surrendered all daily gains after the German CPI report.

The German CPI data came mostly in line with expectations, at 2% (YoY) and 0% (MoM) in October. The French budget was narrowed from ¬-97.7B to ¬-85B, and industrial output fell from +1.5% to -2.7% (MoM). The Greek bank stability fund leader, Thomopoulos, admitted that 2013 will be a difficult year.

As of writing, the pair is extending the down move and now edging lower on the day as it plunges to 79.41 low and looks for further losses. "USDJPY is downside corrective and we would allow for a retracement to the 79.12 support line", said Commerzbank analyst Karen Jones, expecting the market to then retest 80.63/66.
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