While the EUR/JPY remains capped at the 135.00 level we could see a pullback to the base of the upward sloping channel which comes in around 128.00/20. The 131.00 level is pretty important at present and it would take a break below this level to open the way for the move to 128.00/20. I have attached a daily EUR/JPY chart to illustrate this.
A worst case scenario would see a move back to 125.50, and overall, whilst we remain above this level the focus will remain on retests of the 134.50/00 region.
