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The outlook on the cross remains bearish, while there is room for a drop to the 125.75 area, noted Karen Jones, Head of FICC Technical Analysis at Commerzbank.

Key Quotes

EUR/JPY recovered on Friday but not enough to dislodge the 55 day ma at 130.07 and 2018 downtrend line at 130.37. Thus it starts this week still on the defensive and the risk remains that we see a slide back to 125.75, the last defence for the 124.62 recent low. Please note that intraday signals are less clear, but for now we stay bearish”.

“Below 124.62 there is scope for a slide to the 124.08 December 2016 high. Between here and the 50% retracement at 123.40 we expect to see some profit taking. Below here would target 120.10/00″.