Continued Yen weakness, with latest CPI figure coming out of Japan showing 18th straight month in deflationary territory, last at -0.5% for Core Tokyo year on year index, and verbal intervention from authorities every now and then, the Yen has turned in a 2-day time span from relative strongest currency among majors, to once again weakest one, only above CAD. According to Sean Lee, FXWW founder: “EUR/JPY is trading towards the upper end of a bullish channel near 121.00, but I cannot get carried away here on the bull train whilst the BOJ have no fixed timelines and the market remains short of JPY,” the analyst says.
Immediate resistance to the upside for EUR/JPY shows at recent fresh 20-month highs 121.27, followed by April 2010 lows at 122.41, and April 2011 highs at 123.32. To the downside, nearest term support lies at past Friday's highs 120.72, followed by Tuesday's high and weekly starting price at 120.20, and Monday's lows at 118.85.
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