Forex: EUR/JPY volatile still above 125.00

EUR/JPY is last at 125.60, up for the week so far +1.37% while down -0.68% from previous Asia-Pacific open yesterday, whith volatility measured as daily average range around 2 year highs above the 200 pips per day on 14 day avergae. “The volatility is arising from confusion regarding what the official meetings this weekend may say regarding Japanese efforts to weaken the Yen,” says FXWW founder Sean Lee, adding: “I would not be surprised if Japanese officials talk the Yen up a bit over the next few days but with overall JPY flows still overwhelmingly negative, this is only likely to lead to more volatility,” he concludes.

From the technical perspective, Valeria Bednarik, Chief Analyst at Fxstreet.com notes: “The hourly chart shows price above 200 SMA while this last stands above 100 one, while indicators turned lower in negative territory. The situation seems fragile for the common currency, as once below 125.45 immediate support, the downside will be favored with recent lows around 123.30 now at sight,” Valeria suggests. EUR/JPY is flat since Feb 01 late Asian session quotes.

Valeria sees support levels at: 125.45, 125.00 and 124.40, while resistance levels at: 126.10, 126.60 and 127.10.