Forex: EUR/JPY at gains ahead of critical hours in Cyprus

FXstreet.com (Barcelona) - As the government of Cyprus considers the next hours critical to the country’s future, investors’ expectations are pushing the euro higher ahead of the Cypriot Parliament vote during the afternoon. The EUR/JPY retraced its losses back to the opening price of 122.42 and moved 50 pips higher, to 122.92 high.

The statement, read by Cyprus government’s spokesman Christos Stylianides, says: “The President of the Republic and the Government are in hard negotiations with Troika in order to conclude to solutions that will save the banking system, the economy in general and will bring back calmness in the country. During these really critical hours, everyone must demonstrate the highest level of responsibility”.

UBS analysts say that “near-term support is at 121.15, a break below would expose 118.73”, wrote analyst Gareth Berry, pointing to resistance at 126.04 ahead of 127.71.