Forex: EUR/JPY hovering over 120.00 (Barcelona) - The cross continues its correction lower on Friday, easing some ground from today’s tops in the proximities of 120.70, as the risk aversion is capping further euro upside in combination with a relatively stronger Japanese yen

“There are no obvious near term resistance levels in the short term. Not at least until the ’11 high at 123.32 or the important retracement level above that at 127.01. For those looking to jump on the back of this trade at this late stage there are no obvious near term stop loss levels, although the 113.74/115.50 zone could be very supportive”, comments W.Moore, Technical Markets Strategist at RBS.

At the moment, EUR/JPY is down 0.34% en 119.78 with the next resistance at 120.35 (hourly high Jan.18) ahead of 120.83 (high May 4 2011) and then 121.03 (high May 2 2011).
On the flip side, a breakdown of 119.00 (psychological level) would aim for 118.44 (hourly low Jan.17) en route to 118.00 (psychological level).