Forex: EUR/JPY almost at 130.00 on European session

FXstreet.com (Barcelona) - The mood is on favor of the upside as the EUR strengthens and the JPY weakens with European liquidity after Japan finance minister Aso revealing that Japan faced no opposition at G20 to its message that its monetary policy is aimed at beating deflation. The cross climbed the chart from 128.00 ground and peaked at 129.89 high, so far, where profit taking brought the price back to 128.70 (+1.22% on the day).

EMU current account surprised positively, with a wider seasonally adjusted surplus from €13.8B to €16.3B in February, beating expectations of €15.0B, and n.s.a. data at €12.1B instead of the €1.3B consensus. Italy industrial orders fell -2.5% (MoM) and from -3.3% to -7.9% (YoY), while industrial sales contracted -4.7% (MoM).

Japan coincident index rose from 91.6 to 92.4 in February, the leading economic index has gone from 95 to 97.6, and all Industry Activity Index improved from -1.6% to +0.6% (consensus of -0.6%.

“The 128.85 resistance is regarded as the last defense for the 131.12 recent high. Directly below 125.00 lies the 20 and 55 day ma at 124.28/85 and these offer additional support”, wrote Commerzbank analyst Karen Jones.