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Forex - EUR/JPY holds flat as market braces for BoJ meeting

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Investing.com - The euro held steady against the yen on Tuesday after investors snapped up nicely priced positions in the Japanese currency ahead of the Bank of Japan decision on interest rates and monetary policy on Thursday.

While Japan's Prime Minister Shinzo Abe has called for more aggressive monetary policy to combat deflationary pressures, investors went long on the yen and erased earlier losses on sentiment the currency had weakened enough in prior sessions.

In U.S. trading on Tuesday, EUR/JPY was unchanged at 121.76, up from a low of 121.14 and off a high of 121.87.

The pair sought to test support at 121.13, Monday's low, and resistance at 121.98, Monday's high.

In Europe, Germany's services PMI rose to 54.7 in February, beating market calls for a 54.1 reading, according to Markit Economics.

A eurozone services PMI hit 47.9 compared with consensus forecasts for a 47.3 reading.

Elsewhere, official data released earlier revealed that eurozone retail sales rose by 1.2% in January, well above expectations for a 0.2% gain.

The euro gained against the yen earlier on the data, though the yen snapped back as investors bought ahead of the Bank of Japan's decision on interest rates due out on Thursday.

The yen has depreciated by close to 11% over the past three months in wake of Abe's calls for looser monetary policies, and many investors feel policy shifts have now been priced into trading.

The euro, meanwhile, was up against the pound and up against the Canadian dollar, with EUR/GBP trading up 0.09% at 0.8627 and EUR/CAD trading up 0.10% at 1.3392.

On Wednesday, the eurozone will unveil revised data on fourth quarter gross domestic product rates.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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