EUR/JPY returns one month and 600 pips on the Italian

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The Italian elections have a huge and negative impact on the euro, and also on the Japanese yen. The yen returned to its safe haven position after a few months of falling over stimulus efforts from the Japanese authorities. EURJPY Plunging 600 Pips on Italian election results hung parliament and safe haven February 25 2013

The pair already traded above 125 early in the day at around 15:00 GMT, and is now under 119 before 21:00 GMT. The comeback of the debt crisis is also the comeback of the safe haven yen.

This is the lowest level in a month. Where will this stop? The swing low was 118.73, but the cross made a nice rebound to 119.62 at the time of writing.

Italy’s complex political system and complex election law produced a complex outcome. Basically, the upper house if deadlocked. The center-right has a small advantage there, while the center-left enjoys a majority in the lower house.

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