Forex: EUR/JPY cools down below 125.50

EUR/JPY is currently at 125.40, off session lows at 124.19, a +1.31% higher, but still unchanged for the current month of February. The cross retraces from yesterday's high at 126.50, fourth consecutive daily high lower than previous, with Yen not being the weakest currency among majors anymore, at least for last few days. Nikkei index trades flat around the 11250 points mark, with latest prelim GDP q/q data showing a decline of -0.1%.

According to Valeria Bednarik, Chief Analyst at Fxstreet.com: “The EUR/JPY hourly chart shows momentum heading slightly lower as RSI turns flat in neutral territory, while price develops in between MA’s,” the analyst says, adding: “As remarked yesterday, 100 SMA remains below the 200 one, which reflects the easing in upward strength. In the 4 hours chart, a bearish trend seems to be developing yet price needs to break below 125.00 to be able to extend its fall, with 123.90 area then at sight,” she concludes.

Valeria finds support levels at: 125.00, 124.40 and 123.90, while resistance levels at: 125.55, 126.10, 126.60.