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EUR/JPY broken support level

FXstreet.com (London) - The JPY has strengthened across the board along with the dollar in a typical risk aversion play while stock markets have plummeted across the globe following a series of economic data yesterday.

The pair has pulled back below key 131.10 daily support levels after making a new recovery high that was recorded yesterday, 134.38. The pair has been dropping like a stone since to as far as 130.20 in London from overnight highs 132.80.

On the daily charts, offer indicators that are pointing to the upside after such a move. German PMI has given the single currency a little bit of stability this morning also, which beat expectations 49.0 – 48.5. Overall conditions in services and manufacturing in the Euro Zone beat expectations 47.7. – 47.2, albeit results came in below the 50 and can be seen as bearish. Support is 130.50 and 129.50 in the cross.

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