Forex: USD/JPY plunges on 2012 GDP in EU
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USD/JPY
FXstreet.com (Barcelona) - The European Union expects its GDP to contract by 0.3% and a 0.4% recession in the Euro area in 2012. The report forecasts unemployment to remain very high, with some countries' domestic demand hurt by the still large (though reducing) internal and external balances and its economic activity significantly diverging.
On the bright side are the expectations of growth by 0.4% in the EU and 0.1% in the Eurozone in 2013, and strengthened in 2014. However, risk aversion has taken over the market, with the USDJPY being capped at 80.40 and plunging back to the 80.00 psychological level. The pair is now edging lower on the day.
"The pattern below 80.66 peak is obviously a corrective one and I expect a break through 80.43 to initiate a rise for 81.50", wrote Deltastock.com analyst Stoyan Mihaylov, pointing to crucial support at 79.81 low
On the bright side are the expectations of growth by 0.4% in the EU and 0.1% in the Eurozone in 2013, and strengthened in 2014. However, risk aversion has taken over the market, with the USDJPY being capped at 80.40 and plunging back to the 80.00 psychological level. The pair is now edging lower on the day.
"The pattern below 80.66 peak is obviously a corrective one and I expect a break through 80.43 to initiate a rise for 81.50", wrote Deltastock.com analyst Stoyan Mihaylov, pointing to crucial support at 79.81 low
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