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EUR/JPY buyers again step in at 131.00, support remains firm

FXstreet.com (Barcelona) - The EUR/JPY is edging lower during Asia trade, down 30 pips at 131.80 but well off the lows set earlier in the session at 130.99.

From a technical perspective, the pair appears to be consolidating gains, which would be a constructive development on the daily chart after the sharp move higher last week. It will be important to monitor the lower end of the trading range (131.00 area), as a close below here would be a bearish development and could lead to additional weakness. On a final note, Both short term moving averages and the RSI (14) remain in bullish technical set up.

According to Val Bednarik at FXStreet.com, “The EUR/JPY erased all of past week gains at the opening, falling to 130.96 and leaving a big gap following Japanese Economy Minister Amari´s comments, stating yen’s excessive strength has been largely corrected and further weakness could even be harmful. The hourly chart shows price however quickly recovering 100 pips, with price struggling to overcome 100 SMA, around current levels, although indicators head strongly south around their midlines: if price is unable to recover the 132.00 level, a retest of the daily low is likely although losses will be less abrupt that this initial market move”

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