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EUR/JPY retakes 137.50

FXStreet (Edinburgh) - The upbeat momentum in the euro is helping EUR/JPY to extend its bounce off the boundaries of 137.00 the figure posted during the European morning.

EUR/JPY in 3-week lows

Spot seems to have found quite decent support around the 137.00 handle, levels last seen in early September, deflating from recent multi month peaks above 141.00 against a backdrop of mounting weakness around the EUR. The rebound in the cross is now running out of steam in the mid-137.00s, closely watching the events from the ECB. It is worth noting that the ECB will start its purchases of ABS and covered bonds in the last quarter of 2014 and will last for two years. “Near term rallies need to regain the 200 day ma at 139.62 in order to reassert upside pressure at this point and trigger a move to 141.88 and 143.55 (61.8% and 78.6% retracement of the move seen this year)”, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

EUR/JPY levels to watch

The cross is now losing 0.01% at 137.44 with the immediate support at 136.99 (high Sep.8) ahead of 136.65 (low Sep.9). On the flip side, a breakout of 137.72 (high Oct.2) would expose 138.00 (psychological level).

EUR/USD steady as ECB releases programmes details

EUR/USD barely reacted and continued to trade at the 1.2660 area after the European Central Bank released the details of the asset buying program announced last month.
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