EUR/JPY stays in red around 135.00

• Cross comes up after testing 134.60.
• JPY remains bid amidst high volatility.
• EUR extends the downside.

After bottoming out in the 134.60 region, EUR/JPY is now attempting to regain the 135.00 handle and above.

EUR/JPY rebounds from 134.00

The cross is fading part of Tuesday’s advance, although it so far appears well supported around multi-day lows in the 134.00 neighbourhood.

High volatility and a component of risk-off trade have given renewed buying interest to the Japanese safe haven currency and accentuated the selling bias around the European currency, all encouraging the ongoing correction lower.

Ahead in the week, December’s Japanese current account is due tomorrow, while the ECB will publish its Economic Bulleting later during the European morning.

EUR/JPY relevant levels

At the moment the cross is losing 0.56% at 134.82 facing the next support at 134.59 (low Feb.7) followed by 134.43 (55-day sma) and then 133.99 (low Feb.6). On the other hand, a break above 135.85 (high Feb.6) would open the door to 137.53 (2018 high Feb.2) and finally 137.63 (high Sep.17 2015).