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Forex: EUR/JPY side-lined around 124.00

FXstreet.com (Barcelona) - The pair is losing ground on Friday albeit keeping the area around 124.00 ahead of the US Payrolls due later, reflecting the consolidation pattern prevailing in both the Japanese yen and the single currency.

In light of the recent BoJ gathering, Alex Treves, Head of Equities at Fidelity Investment, commented, “Beyond the positive implications for certain asset prices, a general shift to inflationary expectations in Japan could have a wide-reaching effect. However the possibility of a return to domestic inflation, and the boost to competitiveness and returns for many companies due to the weaker yen should not distract investors from some key longer-term questions”.

At the moment, the pair is losing 0.31% at 124.33 with the next support at 123.88 (low Apr.5) ahead of the psychological level of 123.00 and finally 122.77 (Ichimoku Cloud top).
On the flip side, a breakout of 125.61 (high Apr.5) would open the door to 126.03 (high Mar.12) and then 126.58 (high Feb.13).

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