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Forex: EUR/JPY rallies through 119.00 after Spain and Van Rompuy

FXstreet.com (Barcelona) - The EUR/JPY eased during the Asian session to find support just above the 117.00 mark, being able to retrace those losses afterwords. Euro strength has allowed a rally above the 118.00 and now, with the release of EMU construction output and the Spanish bond auction, the cross breached through the 119.mark.

Spain sold a total of €4.5B of debt through 3-year bills (at 2.713%, from previous 3.358%), 5-year bills (at 3.770%, from 3.988% previously) and 2041 bonds (5.696%, from previous 6.002%). The EMU construction output contracted -0.4% in November to an annualized fall from -4.1% to -4.7%. President of the European Council Van Rompuy said that Europe should get back on growth in 2013, which also supported the Euro rally.

“Beyond a small pullback the market remains capable of gains to the 123.00/33 2011 high and 38.2% retracement of the move down from 2008”, wrote Commerzbank analyst Karen Jones, pointing to interim resistance at 121.55 (61.8% retracement of the move down from the end of 2009) and support at the 116.00 mark.

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