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Forex: EUR/JPY hanging above 124.00 bid line

EUR/JPY is currently at 124.14, slightly above the bid line has been supporting the cross for last 2 weeks around the 124 handle. EUR/JPY retraces from yesterday's highs at 125.97, giving back almost all gains made Monday, still in the positive though for the week by a small margin. The cross fell on Euro weakness given worse than expected core UE GDP data, and Yen strength, with BoJ easing measures taking longer to take placed than previously advanced.

For the technical view, Valeria Bednarik, Chief Analyst at Fxstreet.com notes: “While the hourly chart shows indicators aiming higher from oversold readings, the upside seems limited by 124.80 static resistance level now. 4 hours chart presents a stronger bearish tone coming from technical indicators, supporting at least a test of the trend line around 123.60. If below, a deeper fall should be expected towards the 120.80 area for the upcoming sessions,” the analyst concludes.

Valeria sees support levels at: 123.60, 123.10 and 122.45, while resistance levels at: 124.40, 124.80 and 125.30.

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