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EUR/USD floundering again as EUR/JPY pressure caps gains

The price action in the EUR/USD this week has surely disappointed a good many Euro bulls. Of course the push lower in the USD/JPY over the past 5 trading days has not helped on this occasion. In fact it has hindered and the simple reason for that is all about the EUR/JPY. You see, if the BOJ is about to hike rates next week, that has not just dented the USD/JPY. This prospect has impacted all the major Yen crosses lower too. If you look at any of those right now you will see how they have all set interim lows. That cross rate dynamic has dented the EUR/USD and repeatedly delivered price discovery sellers on rallies. That has been the case all week and right now this morning, the rebound in the USD/JPY is adding pressure on the EUR/USD. The Euro closed in the US last night at 1.0301. The range so far today has been covered by 1.0278 and 1.0310 and right now the Euro is at the very lower end of that range, currently trading at 1.0280  
 

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