The euro has gained some ground late in the session, after comments from Japan’s finance minister that Japan will buy bonds issued by the ESM to help stabilize the European economy. EUR/JPY trades now at 115 area and USD/JPY at 87.65. Australia’s trade balance was worse than expected generating some selling pressure on the aussie, which trades -0.2% lower for the day against the greenback. News calendar comes in light for the rest of the day, except from the Euro unemployment rate and the German factory orders due at midday.
Trade Idea
EUR/JPY Daily Chart
The pair is on a clear uptrend for the last few months and can be bought at dips. We look for a clean break and close above 116 area, which will open the door for 117.85 in the short-to-medium-term.
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