FXstreet.com (London) - EUR/JPY has traded in a tight range the day before Christmas. Euro, like the other major currencies around the world, will be largely controlled next year by what happens when economic stimuli is unwound. Yen has traded softer in recent sessions, with the central bank, the BoJ have stressed in minutes that they will do everything required to boost the economy and prevent deflation. This has led market to believe further liquidity from the central bank may be required.

The pair currently trades at 131.33, 3 points down from the open. First support is found at 131.21 (support level of current trading range this session), followed by 130.80 (strong consolidation zone 23 Dec).

For resistance in case of a reversal to the upside 131.45 is our primary resistance (upper bound of current trading range), followed by 132.14 (strong consolidation zone Nov 25).

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