Forex: EUR/JPY regains 125.00 level on US session

The EUR/JPY has recovered the losses made during European time, meaning the drop below the 125.00 mark to as low as 124.56. Little before the US session, the cross began bouncing back and returned to the psychological level around the opening.

However, the market still has to retrace the early losses made in reaction to the open disagreement between PM Abe and Finance Minister Aso over the way forward for monetary policy and even who the next BoJ governor will be.

UBS analysts said that bullish trend conditions persist: “A break above 127.92 would be positive, opening the way to 132.05”, wrote analyst Gareth Berry, pointing to support at 122.90 ahead of 122.38.