Forex: EUR/JPY notches highest daily close since Jan 2010

FXstreet.com (Barcelona) - The EUR/JPY closed the session sharply higher, up 110 pips at 131.31. This was the highest daily close for the pair since all the way back in January 2010. Economic reports out of Japan due out later in the session will include Bank Lending, Current Account, and Eco Watchers Survey. We will also get some data out of Europe including German Trade Balance, Italian Industrial Production, and Eur Consumer Price Index.

According to Val Bednarik of FXStreet.com, “EUR/JPY reached 131.75 in the heat of yen selloff, levels not seen since January 2010, although EUR weak nature put the pair back down towards current 131.00 area. The hourly chart shows price found support in its 100 SMA earlier today, well below current price now, around 129.60, while indicators retrace from extreme overbought territory aiming for a correction.”

She went on to add, “Still former high around 130.40 is the level to watch as dips towards that area should see late buyers jumping into the bullish party. In bigger time frames, the upside is still favorer with 133.60 now at sight.”