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Forex pairs in this Article » EUR/JPY, USD/JPY (California) - USD/JPY is showing strength in Asia as Japanese core machinery orders unexpectedly fell 3.3% in April from the previous month.

This comes as a sign that "the March earthquake and tsunami hurt companies' appetite to spend on equipment and facilities," according to a Cabinet Office statement on Monday.

The pair opened Monday's trade at 80.25, has advanced into the 80.70 zone, and is now pulling back slightly, last quoted at 80.60.

The Yen is also losing ground against its European counterpart, as EUR/JPY has risen 55 pips since the Asian open, quoted now it the 115.50 zone.

"EUR/JPY usually falls in Asia on Fridays as players worry about possible bad news over the weekend and prefer to be either short EUR/JPY or square," comments Sean Lee at Forex Live. "When Monday comes around these shorts tend to cover or wanna-be longs reinstate and I think that's why we are seeing the modest rally in EUR/JPY this morning, up to 115.50," he offers as his point of view.

USD/JPY resistance levels lie at 80.68 (May 27 low), 80.77 (20 Day EMA) and, above there, 80.92 (May 18 low). To the downside, support levels lie at 80.45 (June 10 high), 80.32 (June 7 high) and 80.17 (May 9 low).
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