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Forex: EUR/JPY in session lows around 120.50/55

The sentiment surrounding the euro is under increasing pressure on Thursday, dragging the cross to fresh intraday lows in the area of 120.50/55
At the same the prevailing risk-off tone is intensifying the JPY demand, helping in the downside.

William Moore, Technical Markets Strategist at RBS, comments that the cross failed to follow through 127.01, prompting investors to think about the likeliness of a ceiling at that level. “. We look due for some kind of a correction here and there’s not a better level to focus on than 113.744 which was around the ’08 lows and was an important level throughout ’11

At the moment, EUR/JPY is losing 0.45% at 120.67 facing the next support at the psychological level at 120.00 ahead of 119.20 (low Feb.27).
On the upside, a surpass of 122.04 (hourly cloud top) would open the door to 122.25 (low Feb.21) and 122.32 (Tenkan Sen line).

Forex Flash: USD index targets 1 month high of 83.5 – Westpac

The USD index has edged for a few weeks, however in the wake of the sharp deterioration in EZ financial conditions, and linked to that the resurgence in EZ political risk there exists a definitive threat to this trend. According to the Westpac Strategy Team, “A USD supportive event risk mosaic next week, including a likely dovish Draghi press conference, will likely minimal progress towards the formation of a governing coalition in Italy and the headlong rush into the sequester, should boost the USD yet further. Our fresh 1 month target is for a run towards 83.5, just shy of the July 2012 highs.”
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