FXstreet.com (Barcelona) - The pair is inching higher and higher on Friday, extending its rally around the 122.60 level on increasing euro strength and yen bearishness.

In the view of Karen Jones, Head of FICC Technical Analysis at Commerzbank, “We look for a move towards 121.55, the 61.8% retracement of the move down from the end of 2009 en route to the 123.00/33 2011 high and 38.2% retracement of the move down from 2008, where we suspect that we may see some profit taking”.

At the moment, the pair is up 1.41% at 122.54 facing the next resistance at 123.08 (38.2% of 169.98-94.09) ahead of 123.33 (2011 high Apr.11) and then 123.39 (high May 5 2010).
On the downside, a breach of 121.65 (intraday support) would expose 120.68 (low Jan.25) and finally 119.27 (MA10d).