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EUR/JPY turns positive near 125.70

After a brief test of lows in the 125.40 area, EUR/JPY has managed to pull itself together and is now hovering over the 125.70 area, back to positive territory.

EUR/JPY lower on EUR-selling

The cross is retreating for the third consecutive week so far, coming down from ytd peaks above the 132.00 handle to navigate current levels last seen in mid-June 2013 around 125.40.

The increasing risk aversion since the start of the year has been supportive of the Japanese safe haven, eclipsing the BoJ announcement of negative rates at the same time and fuelling the downside in the cross.

Looking ahead, EUR dynamics (via today’s EU Summit) and risk trends remain the exclusive catalysts for the cross in the near term.

EUR/JPY relevant levels

At the moment the cross is up 0.08% at 125.74 facing the next support at 125.38 (low Feb.19) followed by 125.00 (psychological level) and then 124.96 (monthly low Jun.2013). On the flip side, a break above 128.19 (high Feb.16) would expose 128.92 (20-day sma) and finally 129.98 (55-day sma).

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