Forex: EUR/JPY capped below 21-month highs at 123.00

FXstreet.com (Barcelona) - EURJPY is -0.36% down for the week so far, currently at fresh session lows 121.92, off London session and weekly lows at 121.61, and retracing from yesterday's weekly start at the top 122.92. Yen bouncing is weighing on EURJPY current weakness, as USDJPY is last at fresh session lows 90.66.

"EURJPY will again be the lead pair in Asia and there is major technical resistance at 123.10/20 which will be closely watched," says FXWW founder Sean Lee, adding: "This level is the 38.2% of the big fall from 170 to 94, as well as a weekly high. There is also talk of barrier protection at 123.00." The cross has gained more than +6% since new year started, and almost a +20% since mid Nov.

Immediate support to the downside for EURJPY lies at mentioned London session lows 121.61, followed by Thursday's highs at 121.31, and Jan 18 highs at 120.71. To the upside, nearest term resistance shows at NY session/Friday's highs 122.63/76, followed by fresh 21-month and yesterday's weekly high at 122.93, and April 11 2011 highs at 123.32.