FXstreet.com (London) - Eurozone fears over the strength of trade balances, and the respective plans to fight deficits in the coming years, continue to bound around the market. EUR/USD bounced from near 3 ½ month lows last session, as Dollar strength combined with Euro doubts to put the pair under extreme downward pressure.
EUR/JPY moved to the upside in early trading this session, Yen weakness impacting positively on the pair. Pair trades at 130.59/66, 50 points up from the open. Should Yen weakness continue to outweigh negative Eurozone sentiment, primary resistance can be found at 130.80 (tested high on 15 + 16 Dec), followed by 131.25.
On the upside in case of a reversal in the current bull trend for the pair, find primary support at 129.58 (strong consolidation zone from previous sessions) followed by 129.15.
In thinly traded sessions moves can be exaggerated by wide spreads and unbalanced trading books. This effect is particularly present in lesser traded currencies and pairs.