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Forex: EUR/JPY limited below 124.00 and 50% Fibo

FXstreet.com (Barcelona) - EUR/JPY is last at 123.44, off yesterday's fresh 7-day lows at 121.55, following news on Cyprus bail-out, that would imply a levy on bank depositors, a measure markets in general didn't like as risk of contagion might spread across EZ periphery troubled countries as possible next targets. The cross printed an intraday double low around the mentioned lows level and recovered circa 50% Fibo retrace of latest leg down 126/121.5 at 123.80, printing weekly highs so far at 123.95, still unable to fill the weekly opening gap.

“EUR/JPY was the big mover yesterday, collapsing from 125.50 to 121.50 in early interbank trade but then recovering once the European trading session got underway,” said FXWW founder Sean Lee, adding: “It seems that they were much more prepared for the Cyprus news than the Asian market was, and probably felt that the market overreacted. The bottom of the previous holding channel at 124.00 provides initial resistance whilst support is to be found at yesterday’s intraday highs near 122.70,” the analyst concludes.

Immediate resistance to the upside for EUR/JPY shows at mentioned daily highs/Fibo level 123.80/90, followed by March 14 lows at 124.00, and March 12/15 lows/61.8% Fibo of same leg down at 124.20/30. To the downside, closest support lies at NY session lows 122.80, followed by Feb 21 lows/March 01 highs at 122.22, and yesterday's weekly and 7-day lows at 121.50.

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