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Forex: EUR/JPY retraces from the 127.00 area

The pair is cashing up some earlier gains on Friday, after climbing to the very doorsteps of the 127.00 handle, propped up by the increasing weakness of the Japanese yen and the solid march of the euro.

I.Spivak, Currency Strategist at DailyFX, comments, “Prices broke above resistance at 125.67, 76.4% Fibonacci expansion, exposing the 100% level at 127.08. The 125.67 mark has been recast as near term support, with a reversal back below that targeting the 61.8% expansion at 124.83”.

At the moment, the cross is up 1.57% at 126.47
Next resistance levels line up at 127.91 (Apr. 2010 high) followed by 128.38 (high Jan.26 2010).
On the other hand, a breakdown of 126.08 (Upper Bollinger) would expose 124.42 (low Feb.1).

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