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EUR/JPY supported at 133.00

FXStreet (Edinburgh) - The EUR-weakness continues to heavily weigh on EUR/JPY, dragging it to intraday lows in the 133.00 vicinity.

EUR/JPY lower post-PMI

Mixed results from the manufacturing and services PMIs in the euro bloc kept the demand for the single currency subdued today, despite the EMU’s print surpassed estimates for the present month. The prospects for the EUR keep pointing downwards, recently intensified after the ECB announced an (at least) 18-month expanded bond buying porgramme to start in March.

In the Japanese data front, the most relevant event in the week has been the BoJ monetary policy meeting, with the central bank confirming its steady stance and thus supporting JPY-strength. Today, the flash manufacturing PMI tracked by Nomura/JMA improved a tad to 52.1 in January from 52.0 previous.

EUR/JPY levels to consider

As of writing the pair is down 1.24% at 133.05 facing the next support at 132.87 (low Nov.12 2013) followed by 132.22 (low Nov.11 2013) and then 131.31 (low Nov.8 2013). On the flip side, a breakout of 134.28 (hourly high Jan.23) followed by 135.05 (high Jan.23) and finally 136.02 (hourly high Jan.22).

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