Forex: EUR/JPY stalls above 120.00 for the moment

FXstreet.com (Barcelona) - EUR/JPY is last at 120.57, session lows, retracing from NY session highs at 120.80, having recovered off fresh March lows at 119.92 printed early in NY trade, slightly below previous weekly lows Monday at 120.00 round, on the back of EU's chairman words. Early in London trade Bloomberg reported on a document saying Cyprus bailout is not a template for further EZ banking crisis, the supposed misinterpretation of EU's chairman words that prompted Monday's cascade.

“EUR/JPY has again stalled near 120.00 but the tide is turning and a move lower towards 117.50 looks to be on the cards,” said FXWW founder Sean Lee, who adds: “The psychological level at 120.00 is still attracting profit takers but rallies are getting shallower,” the analyst notes. The cross is down -1.75% for the week mostly on Euro weakness but also some Yen strength, with all eyes now on next week's first BoJ meeting with Kuroda in charge. EUR/JPY is still up +5% year to date, though easing from a +10% advance by early Feb.

Immediate support to the downside for EUR/JPY lies at mentioned weekly lows 119.92/120.00, followed by Feb 27 lows at 119.17, and Feb 25 lows at 118.70. To the upside, closest resistance shows at mentioned NY session highs/yesterday's lows 120.75/80, followed by yesterday's highs 121.88, and early Monday Asia-Pacific open lows at 122.14.