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Bearish momentum in EUR/JPY resumed........>

EURO-YEN
EURO-YEN: Bearish momentum in EUR/JPY resumed yesterday, allowing the rate to
show at levels not seen in four months. German ZEW Survey was poorer than
expected, with respondents citing increased economic fragility of exporters in
Q4. Concerns over the Eurozone's economic outlook sapped strength from the
single currency, which printed new multi-year lows vs. USD. Meanwhile, JPY was
supported by risk aversion inspired by Apple's warning that the Covid-19
epidemic has derailed its attempts to meet sales & revenue targets for Q1.
- EUR/JPY has added 7 pips as JPY trades on a marginally softer note; the rate
sits at Y118.65. It has bounced off support from the 61.8% retracement of the
Sep 3 - Jan 16 rally at Y118.54, turning the topside focus to the Y119.00 mark.
Above there opens the Feb 13 high of Y119.74. Meanwhile, bears need a fall below
Y118.54 before focusing on the next (76.4%) retracement level at Y117.52.
- Highlights in EZ this week include German PPI & French CPI (Thursday), as well
as flash PMIs from across the bloc & aggregate CPI data (Friday). ECB's de
Guindos speaks on Thursday ahead of the release of the ECB's most recent MonPol
meeting, while the Bank's chief economist Lane speaks on Friday.

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