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16 Apr 2013
Forex: EUR/JPY retraces yesterday’s losses, 2.0% higher on the day
FXstreet.com (Barcelona) - Following yesterday’s drop from 128.94 to test the 125.00 psychological level, the EUR/JPY retraced those losses back to 128.91 and remains close to that area as the NY session takes place and US data gets released.
Industrial production in the US rose more than expected, by 0.4% in March when analysts were pointing to 0.2% as the consensus prediction. February data was revised higher from 0.7% to 0.8%. Capacity utilization rose from 78.3% (revised from 79.6%) to 78.5% in March, beating consensus of 78.4%.
Earlier, US CPI came in lower than expected, dropping from 2.0% to 1.9% instead of remaining unchanged in March, with a monthly drop of -0.2% instead of 0.0%. US housing starts beat consensus of 0.930M by rising from 0.939M to 1.036M in March, while building permits eased from 0.968M to 0.902M, with consensus at 0.940M.
“In the longer-term, EUR/JPY has moved above its key resistance at 111.60 (31/10/2011 high). Further long-term strength towards the strong resistance at 139.22 (05/06/2009 high) is still likely as long as the support at 118.73 (25/02/2013 low) holds”, wrote MIG Bank analyst Bijoy Kar.
Industrial production in the US rose more than expected, by 0.4% in March when analysts were pointing to 0.2% as the consensus prediction. February data was revised higher from 0.7% to 0.8%. Capacity utilization rose from 78.3% (revised from 79.6%) to 78.5% in March, beating consensus of 78.4%.
Earlier, US CPI came in lower than expected, dropping from 2.0% to 1.9% instead of remaining unchanged in March, with a monthly drop of -0.2% instead of 0.0%. US housing starts beat consensus of 0.930M by rising from 0.939M to 1.036M in March, while building permits eased from 0.968M to 0.902M, with consensus at 0.940M.
“In the longer-term, EUR/JPY has moved above its key resistance at 111.60 (31/10/2011 high). Further long-term strength towards the strong resistance at 139.22 (05/06/2009 high) is still likely as long as the support at 118.73 (25/02/2013 low) holds”, wrote MIG Bank analyst Bijoy Kar.