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EUR/JPY riding Yen depreciation vs USD

FXStreet (Guatemala) - EUR/JPY is trading at 147.23, up 0.33% on the day, having posted a daily high at 147.28 and low at 146.71.

EUR/JPY is up on the Asian session with lower inflation reported in Japan and a stronger USD/JPY that see’s it through the 118 handle and making a new four day high but yet to convince of any kind of a break that would see us up to challenge the highs for the three year highs yet at 118.99. The CPI data from Japan was not in favor of Abe’s requirements and came in lower despite recent attempts to stimulate the economy towards the governments inflation target.

From Europe, the markets are looking ahead now to the ECB which is sighted to be sticking with their guns for the time being. A dovish outlook brings in a scenario for a lower Euro in 2015 as an outcome of their required policy in respect to their inflation target that is very much under threat and scrutiny. OPEC's production decision today will not have done the ECB any favors in this respect and nor Abe in the short term.

EUR/JPY noteworthy levels

With spot trading at 147.24, we can see next resistance ahead at 147.32 (Yesterday's High), 147.73 (Daily Classic R2) and 148.04. Support below can be found at 147.24 (Daily Classic R1), 146.88 (Hourly 200 SMA), 146.85 (Hourly 20 EMA), 146.83 (Daily Classic PP) and 146.79 (Hourly 100 SMA).

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