Risk appetite was given a boost in the late session of the last day of the week on generally positive economic data. Consequently Japanese yen was sharply lower on improved risk appetite. There were additional pressure from speculation that BoJ might discuss more monetary easing measures in the coming meeting on March 15, which aims at lowering short term interest rates to fight against deflation. Also, LIBOR for three month yen loans dropped below dollar for the first time since August last year, which made yen the most attractively funding currency for carry trades than dollar.
The EURJPY broke through the resistance at 121.78 and rested at 61.8% retracement by the end of the week.
The EURJPY technically could be push up to touch the resistance at 124.51.
