The EUR swung higher overnight because it was backed by the German confidence data, leading the EURJPY cross swung towards the next resistance level at 126. The pair reached as high as 125.90 this morning. The JPY seems to be taking a break to hold the “continuous downward momentum”, before the next selling off comes.
I prefer the “buy the dip” strategy for this pair because the price is near to the resistance level at this moment. In the technical view, I remain my view as mentioned this week that the EURJPY holds the coming support at 124.20 and next resistance at 126.00.
Via Daily Market Report for 20 February 2013: German ZEW Climbs Higher – Is the Data Still Meaningful?