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Forex: EUR/JPY sideways just below 121.00

FXstreet.com (Barcelona) - After going as low as 119.75 in mid-European morning, the EUR/JPY bounced back above the 120.00 handle and fully retraced its losses. The market has now been moving sideways between 120.70 and the 121.00 mark, with no particular direction defined yet.

The next BoJ meeting is next week and much pressure has been put on Governor Kuroda’s shoulders. Nomura Strategists see the market expecting a change in BoJ policy framework as early as next week, the consolidation of two JGB buying operations (APP and Rinban) and the scrap of banknote rule next week. Further, JPY10trn of additional asset purchases are expected in 2013, with increase of the duration of JGB purchases to 10y expected to be announced.

Mataf.net analysts point to resistances at 120.75, 121.50 and 121.85, while supports are at 120.15, 119.75 and 118.90.

Commodities Brief – Precious metals falter, crude surges forward toward 97.00

Gold prices managed to fall below the 1600 barrier/support Thursday, as Cypriot banks reopen and renewed confidence permeates the land. With upbeat GDP data coming out of the US earlier, the mood was all the more palpable of a steadfast recovery – the USD index also crept higher. Having rescinded its hold on the aforementioned level, the price is trading at USD $1597.12 per oz. in these moments during US trading. A retest of the 1600 mark will ultimately steady the nerves of gold bears and preserve an upside trend that was holding on a weekly basis.
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Forex Flash: Cypriot/Italian tensions have iron jawed European yields - BBH

Brown Brothers Harriman analysts note that the combination of the heightened tensions due to Cyprus and the unresolved Italian political situation has widened the iron jaw in Europe's rates.
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