EUR/JPY predictions january 2012

forex trading outlook today - EUR/JPY predictions january 2012 : The euro capped off the most tumultuous year in its short history on Friday, slipping to a 10-year trough below 100 yen and struggling to hold gains against the dollar, a trend traders expect to continue in 2012. The euro fell 0.9 percent to 99.77 yen and looked set to end the year down more than 8 percent against Japan's currency.

On Friday, the euro traded at $1.2940, less than a cent above its 2011 low hit earlier this week. The dollar lost 0.9 percent to 76.95 yen and ended the year down 5.2 percent against Japan's currency. the euro would drift toward $1.20 in early 2012.

The focus shifted to Spain on Friday after the country's new government said the 2011 budget shortfall would be much larger than expected, and it announced tax hikes and wage freezes that could push Spain back to the center of the crisis.

The news drove the euro below 100 yen, though it later recovered some ground against the dollar, partly as traders took some last minute profits and closed their books on 2011.

It may even be due for a modest bounce in early Janauary if only because positions are so heavily stacked against it. Commodity Futures Trading Commision data on Friday showed bets against the euro swelled to a record in the latest week

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