For a cross that has been essentially range-bound for the better part of nine-months it is remarkable to me that we can get such severe bouts of volatility within fairly well-defined parameters. EUR/JPY ended last week on the doorstep of 135.00 after the US employment report, only to tumble nearly 5 JPY in two trading days as the risk universe seemed to shrink.
The Greek news helped undermine the pair as has a general rise in risk aversion, as emerging markets come under some profit-taking pressure as the reflation trade loses steam. 129.75 is minor support on weakness with better support down at 128.95.
