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Forex: USD/JPY bounces to 95.00 mark

FXstreet.com (Barcelona) - The risk-off drop in reaction the Cyprus bailout found its low at 94.09 and reasonable support at 94.30 area. After another test of that support as the Asian session closed, the USD/JPY was able to bounce back to the 95.00 ground, but still to fully retrace the drop earlier, from 95.30 zone.

The economic calendar showed an Italian global trade deficit in January, at €-1.619B, instead of the €2.110B surplus expected following December's €2.105B. Trade within the EU improved from €-1.212B to €0.663B.

Over the Asia session, China's House Price Index rose from 0.8% to 2.1% in February, concerning investors afraid of a housing bubble. New home prices rose in 66/70 cities (from 53 in January) while Existing home prices also rose in 66/70 cities (a decent pickup from 51 in Jan). This change explains the governments' need to change its policy on housing sales, particularly price and lending controls to cool the sector.

UBS analysts are bullish: “The latest weakness is held by the main support at 93.11. While this holds on closing basis, there is scope for resumption of upside”, wrote analyst Gareth Berry, pointing to resistance at 96.71.

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